Author: André de Almeida
Today the press reported on the approval of the nearly three billion dollar settlement agreement reached between Petrobras and investors, bringing to a close the class action suit brought due to the devaluation of its securities traded on the New York Stock Exchange caused by the revelation of the Operation Car Wash corruption scheme within the company.
In his Final Judgment decision dated June 22, 2018, Judge Jed S. Rakoff of the United States District Court, Southern District of New York upon carefully reviewing all the terms of the agreement decided:
“After careful consideration, the Court hereby grants Class Plaintiffs’ motion for final approval, finding that the Settlement Agreement and Plan of Allocation are fair, reasonable, adequate, and comport with all the requirements of Law.”
The settlement is a significant victory for the protection of Brazilian business ethics as well as serves as an opportunity for new beginning for Petrobras that, acting within the law and optimizing its corporate management practices, should make the corrections necessary for its resuming its trajectory of success.
The positive impact of this court decision equally should serve as a paradigm for the Brazilian Judiciary towards guaranteeing that, following the example of this class action result abroad, Petrobras also indemnifies those who invested in its shares in the Brazilian capital market.
If the facts are exactly the same this is a basic matter of justice and fairness.
For this reason, attention is even more focused on the Public Civil Action filed by Almeida Advogados on behalf of the Association of Minority Investors – AIDMIN, which seeks with erga omnes effect to indemnify Brazilian shareholders according to the same terms as the settlement agreement approval granted abroad.
We are confident that the Brazilian Judiciary will rise to the occasion and address the matter with institutional independence and transparency.
Certainly a favorable decision will serve as important precedent for the moralization of ethical conduct in companies that derive capital from public investment in the Brazilian financial market.
More than ever unequivocal support for the protection of Brazilian investor interests is necessary, which investors are not only institutional but also include an infinite number of small investors, all of whom deserve equal respect and government protection, all thirsty for justice as is all of Brazilian society.