Providence sued on Christmas Eve, on behalf of shareholders and bondholders. Forbes described the growing interest of lawyers in Petrobras as being like that of sharks 'smelling blood in the water'. The company is, it says, 'now in the crosshairs of lawyers from Brazil to the United States, and American lawyers don´t horse around'.
Biggest fraud in Brazilian history
The share price of the company is now hovering around 10% of what Goldman Sachs predicted for it in 2008. New York law firm Labaton Sucharow brought the suit on behalf of Providence and also cited some politicians in the suit as 'persons of interest' in the developments which can now claim to be the biggest fraud in Brazilian history. Labaton Sucharow is the third firm in a month to go after Petrobras. The litigation could be on a par with Enron and Worldcom as regards the size of the class action alleging fraud.
Executives in jail
Arrests have also been made - and some of the company's executives spent Christmas in jail or waiting to hear when their court date will be. Source: Forbes
Email your news and story ideas to: [email protected]
