CT-BATTEA-GLOBAL-LITIGAT
Battea Global Litigation Research, Inc. believes today was a big milestone win for a large group of international investors supporting a coalition of law firms and the Dutch Stichting Petrobras Compensation Foundation (“SPCF” or “Foundation”) in the Netherlands, in their litigation over losses relating to the Petrobras “Lavo Jato” or “Operation Car Wash” scandal.
The Rotterdam District Court ruled on whether the Foundation representing investors, who purchased securities outside of the United States, has the right to sue Petrobras in Dutch courts.
Petrobras has been fighting investors both in the U.S. and internationally and has sought to drag investors to arbitration in Brazil. However, on January 3, 2018, Petrobras announced that in connection with the losses investors suffered from the “Lavo Jato” bribery scandal, it had agreed to a USD $3 billion settlement with investors who purchased ADRs (American Depository Receipts/American Depository Shares) and USD denominated bonds in the U.S.
The U.S. litigation and settlement left investors that purchased primary shares of Petrobras traded in Brazil and via linked markets in Europe and bonds bought outside the U.S., without any compensation for their investment losses in those securities and subject to Petrobras’ continued claims of innocence and calls for any dispute to be resolved via arbitration in Brazil.
Today, the Dutch court ruled that the Company’s own articles calling for arbitration, did not meet the standard for which Dutch courts determine to be valid ground to deny the investors and the Foundation constitutional access to bring litigation and claims against Petrobras in the Netherlands. It is important to note that Petrobras has multiple subsidiaries, including Petrobras Global Finance B.V., which are headquartered in the Netherlands and the impact of the briberies and other fraud related acts extends to the Netherlands and involves Dutch companies and provides a strong nexus for jurisdiction for international investors to demand litigation and ultimately restitution there.
The ruling is a big step toward investors’ outlook for recovery of some of the billions lost, whether losses incurred in U.S. dollars, Euros, Brazilian Reals (Real) or other currencies. The arbitration requirement has been much touted by Petrobras and reflected in the media. In the opinion of Battea Global Litigation Research, Inc., today’s ruling is definitely a big blow to Petrobras’ arbitration strategy.
Petrobras’ controversial statements of innocence is in stark contrast to its agreement to a USD $3 billion settlement for securities traded in the U.S. alone. Strong and growing skepticism to any meaningful outcome resulting from Petrobras’ calls for arbitration at the Brazilian stock exchange, have prompted institutional investors from around the world to rally for proper objective court litigation and a fair resolution in the Netherlands.
Peter Hansen, Chairman of Battea Global Litigation Research, commented: “We have been following the U.S. Petrobras settlement, as well as the litigation efforts taking place outside of the U.S., very closely. Pricing of Petrobras securities, whether traded in Brazil, the U.S. or elsewhere, are very closely linked in real-time markets. In fact, the Petrobras fraud impacted investors, on a global scale, with the same relative ratio of losses.” Hansen continued, “It would be absurd, if Petrobras was able to get away with paying only holders of U.S. ADR shares and U.S. issued bonds and it would be nothing short of inequitable, to use $3 billion in company funds to make a “special distribution ”, to only a select group of shareholders and investors, and conversely, have the remaining group of international shareholders and investors pay for it!”. Hansen concluded that “the Dutch ruling, restores normalcy in shareholders avenues for recourse and expectation of equal treatment”.
On a more technical level , the Dutch courts today in summary ruled for granting jurisdiction in the Netherlands as follows:
Dutch Defendants
The court accepted jurisdiction in respect of the Dutch defendant PETROBRAS GLOBAL FINANCE B.V., for below allegations:
1. The initiation and maintenance of the large-scale fraud;
2. The unlawful concealment of fraud;
3. The publication of inaccurate, incomplete and/or misleading financial information;
4. The issuance of Petrobras securities (shares and bonds) based on inaccurate, incomplete and/or misleading information;
5. The issue of Petrobras securities during the fraud period (i.e. knowing that the funds obtained would be misused);
6. Consciously inspiring the confidence of investors during the fraud period (i.e. saying that the company was highly transparent, had a proper whistle blower arrangement in place, etc.);
7. Acting in violation of (other) applicable regulations (i.e. breaching various (mainly) Brazilian governance and other legal obligations).
The court also accepted jurisdiction in respect of allegations against the special purpose vehicles PETROBRAS OIL & GAS B.V and PETROBRAS INTERNATIONAL BRASPETRO B.V. for their role in the fraudulent scheme, notably certain specified projects.
Brazilian Defendants
In respect of PETRÓLEO BRASILEIRO S.A. - PETROBRAS (Petrobras Brazil), Gabrielli, Foster and the other Brazilian defendants, the court accepted jurisdiction for below allegations:
1. The unlawful concealment of fraud;
2. The publication of inaccurate, incomplete and/or misleading financial information;
3. The issuance of Petrobras securities (shares and bonds) based on inaccurate, incomplete and/or misleading information;
4. The issue of Petrobras securities during the fraud period (i.e. knowing that the funds obtained would be misused);
5. Consciously inspiring the confidence of investors during the fraud period (i.e. saying that the company was highly transparent, had a proper whistle blower arrangement in place, etc.)
Next Steps in the Dutch Litigation
With the favorable ruling announced on September 19, 2018, the District Court schedule in Rotterdam is as follows:
- October 18, 2018: Petrobras to file a skeleton argument-statement listing the various defenses Petrobras intends to present on both the merits and the standing of the Foundation;
- November 14, 2018: The Foundation can respond to that statement;
- December 18, 2018: A potential case management hearing will take place. Confirmation of the date of when this hearing will be decided by the court after November 14, 2018.
The coalition and Foundation leading the litigation, have significant support from institutional investors from around the world including investors in the U.S., UK, Brazil, Netherlands, France, Germany, Spain, Italy, Nordic countries, South Korea, Japan and others. Individual institutional investor losses range in the millions, tens of millions and in some instances close to 100 million Euros.
International, including U.S. investors, who purchased shares of Petrobras purchased in Brazil on the Brasil Bolsa Balcão S.A. or B3 - Brazil (formerly BM&FBOVESPA) and linked markets in Europe and also bought primarily non U.S. dollar denominated bonds outside the U.S. and believe they were damaged by losses related to the “Lavo Jato” or “Operation Car Wash” scandal, should contact the coalition’s administrator, or the Dutch counsel representing the Foundation. For you convenience, we have included their contact information below.
***********************
CONTACT INFORMATION
INVESTOR PARTICIPANT ADMINISTRATION
For administration
purposes, the Dutch Foundation has appointed International Securities
Associations & Foundations Management Company (ISAF) to coordinate all
administration with investors, including contingency success fee based
funding of all investor litigation cost. www.isafmanagement.com
.
ISAF
Management, Adam Foulke, +1-203-252-3378
afoulke@isafmanagement.com
LEGAL – FOUNDATION COUNSEL
Lemstra Van der Korst N.V., Flip
Wijers, Martijn van Dam & Jurjen Lemstra +31 (20) 2050567
f.wijers@lvdk.com
, m.vandam@lvdk.com
, j.lemstra@lvdk.com
STICHTING PETROBRAS COMPENSATION FOUNDATION
Stichting
Petrobras Compensation Foundation
board@pbcompensation.com
www.pbcompensation.com
BATTEA GLOBAL LITIGATION RESEARCH, INC. (“BGLR”)
Battea
Global Litigation Research, Inc., Peter Hansen, +1-203-987-4949
hansen@battea.com
Battea Global Litigation Research, Inc. is comprised of the world’s foremost corporate research analysts providing research and litigation support relating to business valuation and complex securities litigations. BGLR’s experience in the United States and Internationally, combined with our industry knowledge and expertise in economics, finance and complex business litigation research make us uniquely qualified to assist international investors in evaluating litigation events, coalitions and participation procedures.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180919005868/en/
Contact:
Battea Global Litigation Research, Inc. Peter Hansen, +1-203-987-4949 hansen@battea.com
About Business Wire
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Ahead of Holiday Season, Visa Identifies Five Transformative Forces Reshaping Global Payment Security20.11.2025 19:50:00 CET | Press release
New Biannual Threats Report Reveals Fundamental Shift in Fraud Operations as Criminals Adopt Industrial-Scale Tactics To celebrate International Fraud Awareness Week, Visa (NYSE: V) today released its Fall 2025 Biannual Threats Report, revealing five forces that are transforming the global payments security landscape. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20251120412198/en/ The report, produced by Visa's Payment Ecosystem Risk and Control (PERC) team, draws on intelligence from Visa's global network to identify how criminal operations are evolving with unprecedented speed, scale, and sophistication. "The payments ecosystem is experiencing a paradigm shift in how fraud operates," said Paul Fabara, Chief Risk and Client Services Officer at Visa. "Criminals are no longer working as opportunistic individuals-- they're operating like tech startups, building reusable infrastructure and deploying systematic, industrial-scale
Suzano Forms Partnership with Tencent and Ecofuturo Institute at COP30 for AI-Powered Conservation and Nature Education20.11.2025 18:25:00 CET | Press release
New agreement signed at COP30 will see organisations collaborating to use artificial intelligence tools for biodiversity monitoring and digital platforms to boost public engagement in conservation efforts. The world’s largest pulp supplier, Suzano, today announces the signing of a Memorandum of Understanding (MoU) with the multinational technology business Tencent and the Brazilian non-profit Ecofuturo Institute, to pioneer new digital approaches to drive public engagement in conservation. The collaboration will leverage Suzano’s expertise in sustainable forestry, Tencent’s cutting-edge digital technology, and Ecofuturo’s expertise in environmental education, to pilot joint initiatives in both Brazil and China. These include enhancing ecological awareness, accelerating biodiversity solutions, and leveraging digital platforms to foster public engagement in conservation. The partnership will result in a pilot project where advanced AI tools for species recognition developed by Tencent’s
EMVCo Working on How Global Specifications Can Support Agentic Payments20.11.2025 17:38:00 CET | Press release
EMVCo – the technical body that creates and manages EMV® Specifications and programmes that enable seamless and secure card-based payments worldwide – has announced that it is working on how global specifications can support innovation in agentic payment solutions by increasing trust and interoperability across the ecosystem. Agentic commerce is rapidly reshaping the shopping experience by enabling AI agents to act on the consumer’s behalf. This is driving significant momentum for agentic payments, which introduce AI agents as new actors that can initiate transactions with merchants – without requiring direct involvement from the consumer. While agentic payments have the potential to increase convenience and personalisation, they present unique considerations for how transactions are initiated, authenticated and secured. As industry adoption and innovation accelerate, a globally interoperable and scalable approach may be beneficial in realising trusted agentic payments for consumers, m
Université Paris-Saclay and Owkin: A Unique Alliance to Propel University Medical Research to the Top of the European Rankings Through AI20.11.2025 15:17:00 CET | Press release
Université Paris-Saclay and Owkin announce the signing of a memorandum of understanding to explore the potential of K Pro Free - Owkin’s AI co-pilot for biology - for use by Paris-Saclay. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20251120130113/en/ K Pro Free will now be available to the entire Université Paris-Saclay community, and in particular teachers, researchers and doctoral students working in the biomedical sciences. The partnership includes workshops, training sessions and events designed to promote the discovery and adoption of K Pro Free, as well as the co-organization of communication and dissemination initiatives around the use of AI in health. In this way, the partnership will promote user training, but also enrich and continuously improve the co-pilot's models through feedback and use cases from the l’Université Paris-Saclay community. This partnership is part of Université Paris-Saclay’s strategy to integr
Frasca Advances Flight Training Technology with New Visual System Powered by Unreal Engine20.11.2025 15:05:00 CET | Press release
Frasca International, Inc., a FlightSafety International company and leader in flight simulation, today announced the launch of VITAL FVS 100, the next evolution of its visual system technology. Building on the proven TruVision Global platform, VITAL FVS 100 was developed using Epic Games’ Unreal Engine and delivers unprecedented realism, scalability, and innovation in pilot training. The Unreal-powered VITAL FVS 100 system introduces major advancements in visual fidelity and training realism, further enhancing the capabilities of Frasca, a leading developer of flight simulators and training devices. The new system includes physically based renderings, advanced lighting effects, and a new volumetric cloud model that creates dynamic, weather-rich environments. Terrain imagery now includes one-meter resolution coverage for the contiguous United States and Hawaii, with expanded global datasets covering European buildings and tree covered regions. Additionally, enhanced particle effects re
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.
Visit our pressroom
