International energy company faces stockholder lawsuit amid scandal

By Shaun Zinck | Jun 2, 2015


A multinational energy corporation faces a lawsuit over an alleged massive corruption scheme at the company and in the Brazilian government.

Ohio Public Employees Retirement System filed a lawsuit May in U.S. District Court Southern District of New York against Petrobras Global Finance and several individuals and auditors, alleging the company and its executives participated in bribery and money laundering schemes. Ohio Public Employees Retirement System holds stock with the company.

The lawsuit alleges Petrobras was paying money to third parties and in return was receiving construction and services contracts.

“Executives at the highest level were funneling billions of dollars from the company’s coffers to pay inflated contract costs and kickbacks to ensure that the scheme would continue to be lucrative to all involved,” the lawsuit said, adding the corruption took place between May 2010 and March 2015.

The schemes were uncovered after a criminal investigation by the Brazilian Federal Police, the lawsuit said.

The Ohio Public Employees Retirement System seeks an unspecified amount in damages as a result of the uncovered corruption. The plaintiffs are represented by attorneys Frederic S. Fox, Donald R. Hall, Hae Sung Nam, Melinda D. Campbell, Matthew P. McCahill and Pamela A. Mayer of Kaplan Fox & Kilsheimer in New York City. 

U.S. District Court Southern District of New York case number 1:15-cv-03887.

More News

The Record Network