On March 27, 2017, District Judge John G. Koeltl of the U.S. District Court for the Southern District of New York upheld securities fraud claims against Centrais Elétricas Brasileiras S.A. (“Eletrobras”) and certain of its executive officers on behalf of investors in the Company’s American depositary shares and bonds.
Specifically, the court upheld claims that the Company, its chief executive officer, and chief financial officer made materially false and misleading statements about the Company’s adherence to its code of ethics, and materially misstated its financial results in connection with a massive bribery and bid-rigging scheme involving Eletrobras power plants. The court also upheld a claim under Rule 10b-5(a) and (c) that the Company engaged in a fraudulent scheme to deceive investors concerning the same bribery and bid-rigging.
The case is now proceeding to discovery. Kaplan Fox attorneys working on this matter are: Frederic S. Fox, Donnie Hall, and Melinda Campbell.
A copy of the decision is available here.