Articles 23/07/2020


On June 10, 2020 the United States District Court for the Southern District of New York entered its judgment approving the settlement to In Re Vale S.A. Securities Litigation 1:15- CV-9539 (GHW) (S.D.N.Y.). The U.S. class action relates to the dam disaster that occurred on November 5, 2015 at Samarco Mineração S.A.`s (Vale S.A. and BHP Billiton 50%-50% owned) Mariana Mining Complex and sought recovery for Vale stakeholders damaged as a result of the considerable value deflation to the company`s U.S.-traded paper assets upon the revelation of the investigation results and facts concerning the disaster.

The settlement released all claims asserted for USD 25 million, which amount includes distribution to said damaged investors, those holding Vale American Depositary Receipts (“ADRs”) (traded on the New York Stock Exchange (NYSE) as ADSs). Such damaged Vale investors wishing to receive payment from the settlement must submit their claim no later than July 14, 2020.

Settlement Amount: USD 25 million

Eligible Vale Investors: Such Vale investors who were damaged as a result of having purchased Vale’s common and preferred stock ADRs (traded on the NYSE as ADSs) within the Class Period, from May 8, 2014 through November 27, 2015. Estimated average recovery (before the deduction of any Court-approved fees, expenses, and costs): USD 0.028 per affected ADR.

Deadline for Claim Form Submittal: July 14, 2020.

Almeida Advogados has a specialized team dedicated to assisting investor clients relative to the Vale Class Action distribution, assessing their claims and accompanying the processing of the same with the Vale Class Action settlement claims administrator. Noteworthy to mention is the considerable experience of this team in other U.S. class actions involving Brazilian companies as well.

Most notably, in December 2014, Almeida Advogados, through its local assisting counsel, filed the first putative securities class action against Petrobras, which class action was brought on behalf of investors holding common and preferred ADSs traded on NYSE and/or certain Petrobras debt securities, which price fell drastically as the Brazilian Federal Police Operation Car Wash investigation exposed the multi-billion dollar money-laundering and corruption scheme within Petrobras (In Re Petrobras Securities Litigation 14-cv-9662 (JSR) (S.D.N.Y.)). Led by its founding and senior partner André de Almeida, Almeida Advogados had been accompanying the then Petrobras bribery and corruption scheme media disclosure closely and had been carefully preparing for its litigation in light of the drastic shareholder value decline and Petrobras’ related false and misleading statements.

Final Judgment was entered by the Petrobras Class Action court on July 2, 2018, the action being settled at USD 2.95 billion. This resolution represents, amongst other landmark qualifications, the largest class action settlement ever involving a non-U.S. issuer and the 5th largest class action settlement in the history of the United States.

Throughout the Petrobras Class Action settlement claims administration process subsequent to said resolution, Almeida Advogados has successfully requested late Claim Form filing exception for high-value individual investor clients. The firm has also assisted investment funds and other significant investment value clients in working with the Petrobras Class Action settlement claims administrator to cure deficiencies barring the due receipt of their pro-rata share of the settlement proceeds distribution.

Concurrently, by way of further example, the firm has been providing likewise deficiency cure counsel and implementation to authorized claimant investor clients relative to the In re Eletrobras Securities Litigation 1:15-cv-5754 (JGK) (S.D.N.Y.), which first complaint was filed on July 22, 2015 alleging U.S. federal securities violation relative to failure to disclose facts concerning Eletrobras construction project bribery and bid rigging. United States District Court for the Southern District of New York Final Judgment on December 12, 2018 established a pre-expenses settlement payment of USD 14.750 million to the settlement class members, comprised of those having purchased or otherwise acquired the Eletrobras common and/or preferred ADSs during the Class Period of August 17, 2010 to June 24, 2015, inclusive. On June 16, 2020, the Eletrobras Class Action court issued its order authorizing settlement proceeds distribution, which initial distribution is anticipated to be made by the Eletrobras Class Action settlement claims administrator in the relatively near future.

Written by: David Andrew Taylor and Rafael Zinato Moreira