Brazilian electric company faces lawsuit over allegations of corruption and bribery

By Hoang Tran | Oct 16, 2015

WHITE PLAINS, N.Y. (Legal Newsline) - A Rhode Island city has filed a lawsuit against a large international energy corporation over claims of massive corruption.

The city of Providence, R.I., on behalf of themselves and those similarly situated, filed a class action lawsuit on Aug. 15 in the U.S. District Court of the Southern District of New York against Centrais Electricas Brasileiras Sa-Eletrobras (Eletrobas), Jose Costa Carvalho Neto, Armando Casado De Araujo, and Jose Antonio Muniz Lopes, citing violations of the Federal Securities Laws.

The city of Providence, which purchased and maintained Eletrobas securities between Aug. 17, 2010, and June 24, claims that the defendants manipulated and falsified their actual financial results during the specified class period and misled shareholders about financial statements.

The plaintiff alleges that through various acts of corruption, massive bribery, and money laundering that unfairly enriched its top level executives and political affiliates, the defendants knowingly deceived shareholders and profited from their expense. '

The plaintiff argues that money for major projects that projected growth and expansion for defendants, such as a thermonuclear reactor and a hydroelectric dam, were actually funneled to fund a massive bribery and corruption scheme.

Plaintiff is demanding a trial by jury and is suing for rescission and/or damages, with interest, court and attorney costs, and any other reward the court deems just. It is represented by attorneys Frederic S. Fox, Donald R. Hall, Hae Sung Nam, and Pamela A. Mayer of the law offices of Kaplan Fox & Kilsheimer LLP in New York.

U.S. District Court of the Southern District of New York case number 1:15-cv-06434-UA

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