On September 19, 2018 the District Court in Rotterdam, Will Rule on Whether International Investor Litigation against Petrobras Can Proceed in the Netherlands.
STAMFORD, Conn.--(BUSINESS WIRE)--Sep 18, 2018--International Securities Associations & Foundations Management Company (ISAF)
Losses from investments in primary shares of Petrobras traded in Brazil on the Brasil Bolsa Balcão S.A. or B3 - Brazil (formerly BM&FBOVESPA) and via linked markets in Europe and also Bonds bought outside the US, will not be compensated under the US $3 billion settlement in the US.
Petrobras has many subsidiaries, including Petrobras Global Finance B.V., which are headquartered in the Netherlands and the briberies and other fraud conducted via the Netherlands or directly involving Dutch companies, provides a strong nexus for jurisdiction for international investors to demand litigation and resolution there. Petrobras’ controversial statements of innocence are in stark contrast to its US $3 billion settlement for securities traded in the US alone. Strong and growing skepticism to any meaningful outcome resulting from Petrobras’ calls for arbitration at the Brazilian stock exchange, have prompted institutional investors from around the world to rally for proper objective court litigation and a fair resolution in the Netherlands. A favorable jurisdiction ruling for the plaintiff, Stichting Petrobras Compensation Foundation (“SPCF”), representing global investors damaged by the “Lavo Jato” or “Operation Car Wash” scandal, will be a first significant step towards investors’ outlook for recovery of some of the billions investors lost, whether losses occurred in US dollars, Euros, Brazilian Reais (Real) or other currencies.
The Foundation leading the litigation, has significant support from Institutional Investors from around the world including investors in the US, UK, Brazil, Netherlands, France, Germany, Spain, Italy, Nordic countries, South Korea, Japan and others. Individual institutional investor losses range in the millions, tens of millions and in some instances close to 100 million Euros.
On January 23, 2017, SPCF filed a 172 page complaint against Petrobras on behalf of damaged shareholders of Petrobras.
Most of Petrobras’ activities situated outside Brazil are structured via the Netherlands (Rotterdam). Moreover, Petrobras raised billions of debt capital from investors via its Dutch subsidiary, Petrobras Global Finance (PGF). Petrobras (the Brazilian entity) has issued an unconditional guarantee towards the debenture holders for the fulfillment of PGF’s obligations. Providing additional legal nexus to the Netherlands, the Petrobras corruption scandal reached into the Netherlands via a Dutch company, SBM Offshore, which bribed Petrobras executives and ultimately settled with the Dutch public prosecutor for US $240 million, at that time the largest anti-corruption settlement in Dutch corporate history.
Petrobras continues significant operations in the Netherlands to this day and is subject to the supervision of European regulatory authorities pursuant to various of its securities being traded and offered in European securities markets.
In August 2018, a Dutch Court allowed American drilling company Vantage Drilling International to restrict assets owned by Petrobras following an international arbitration judgement for US $622 million. While the arbitration is unrelated to the on-going securities fraud case against Petrobras in Rotterdam, the ruling is another example of Dutch Courts adjudicating matters involving Petrobras in the Netherlands.
A further press release on the Dutch litigation is expected shortly after the District Court in Rotterdam announces the ruling at 11am CET on Wednesday, September 19th.
More information about the litigation can be found at www.pbcompensation.com. SPCF appointed International Securities Associations & Foundations Management Company (ISAF) to coordinate all administration with investors, including funding of all litigation costs so investors can participate on a contingency only basis with no upfront cost. More information about ISAF can be found at www.isafmanagement.com
Claims Analysis and Processing. Battea Class Action Services, LLC, an international leader in class action securities claims filing, has been retained to collect client data and process and validate investor losses. More information about Battea can be found at www.battea.com
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SOURCE: ISAF Management
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PUB: 09/18/2018 05:50 AM/DISC: 09/18/2018 05:50 AM