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“Misled” shareholders of Brazil’s JBS seek over $270 million in damages

19 March 2020

A group of shareholders in JBS SA began arbitration proceedings against the company, stating they were misled after the company’s IPE in Brazil back in 2007.

According to reporting from Reuters, the US-based law firm DRRT and Brazilian co-counsel Finkelstein Advogados released a statement on 18 March saying that shareholders are seeking damages of 1.4 billion reais ($271 million) against JBS SA.

The plaintiffs allege that JBS and its executive team released false and/or misleading information to investors after going public. They claim the company had become the world’s largest meat packer based on, “bribery and corruption.”

They said they had requested arbitration on behalf of 95 former and current institutional shareholders at the arbitration chamber of Brazil's stock exchange, B3 SA Brasil Bolsa Balcao.

JBS declined to comment as arbitration proceedings are confidential.

The arbitration suit is the latest legal blow to JBS, whose owners signed a plea deal with Brazilian prosecutors in 2017 confessing to making illegal payments to scores of politicians to advance their business interests.

The plea deal related to a then three-year old graft probe that shocked Brazil's political and business establishment.

In February, Reuters reported that JBS would proceed with its plans to list its international operations in the United States, but without raising new money from investors.

Read more about this story here.



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