Petrobras investors want judge to find oil giant liable for employees’ corrupt actions

Investors in Petrobras asked a judge in a New York court on Tuesday to rule that the corruption-plagued state oil company of Brazil was in violation of US securities laws, according to Reuters.

Plaintiffs’ lawyers argue that the company’s top executives knew of the multibillion-dollar bribes-for-inflated-contracts scheme which has already seen numerous Petrobras employees, outside contractors and politicians convicted and jailed.

They claim that the company, a huge player in offshore oil production, failed to inform investors of the corruption-related losses which contributed to a plunge in the stocks’ value.

The investors want US District Judge Jed Rakoff in Manhattan to rule that the company is liable for the actions of its employees.

A hearing for a partial summary judgement on some of the plaintiffs’ claims is set for August 5. Full trial is set for September 19, barring an earlier settlement.


Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.
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