Business Wire

CT-BATTEA-GLOBAL-LITIGAT

20.9.2018 00:36:09 CEST | Business Wire | Press release

Share
Litigation Researchers Believe - Dutch Court Ruling - Big Blow to Petrobras’ Arbitration Strategy

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.comm.vandam@lvdk.comj.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.

Contact:

Battea Global Litigation Research, Inc. Peter Hansen, +1-203-987-4949 hansen@battea.com

About Business Wire

Business Wire
Business Wire
101 California Street, 20th Floor
CA 94111 San Francisco

http://businesswire.com

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

Ant International Secures Payment Institution Licence from the Central Bank of Brazil4.9.2026 16:41:00 CEST | Press release

Expanding the company’s capability to support local partners with FinAI solutions Ant International, the leading global digital payment, digitisation, and FinAI solutions provider, today announced that it has received a Payment Institution (PI) licence from the Central Bank of Brazil. “With the Central Bank's invaluable support, we are ready to step up more reliable and comprehensive global payment and account services to enterprises, platforms and SMEs in the country's dynamic digital economy, in ever deeper collaboration with its highly developed payments ecosystem and financial services industry,” said Rodrigo Reif, General Manager, Ant International Brazil. Ant International provides cross-border payments and account services, embedded credit and treasury services, and other finAI and blockchain solutions to clients across Asia, Europe and the Americas. The company processes over 20 million transactions daily, connecting 2 billion consumer accounts to 150 million global merchants v

Bending Spoons completes the acquisition of Airtable4.9.2026 14:30:00 CEST | Press release

Bending Spoons S.p.A. (NASDAQ: BSP) has completed the previously announced acquisition of Airtable, the platform used by more than 500,000 organizations to reshape how teams organize data and manage critical workflows. “Airtable continues to grow because customers value its best-in-class flexibility,” said Luca Ferrari, Bending Spoons CEO and co-founder. “Teams can bring all their data, context, and AI agents together in one place, shape their workflows around their specific needs, and progressively expand their use of the platform over time. As we take the reins, our focus will be on sustaining that growth by investing heavily in Airtable’s product, customer support, and go-to-market capabilities.” “I’m proud of what the Airtable team has built and excited to see the business enter this next chapter,” said Howie Liu, co-founder of Airtable. “I’m confident Bending Spoons has the resources and long-term perspective to help Airtable continue delivering exceptional value to its customers

EQT to acquire McGill and Partners, a leading specialty (re)insurance broker for USD 2.0 billion, from Warburg Pincus4.9.2026 13:48:00 CEST | Press release

Warburg Pincus and McGill and Partners have reached an agreement with EQT that will see Warburg Pincus sell its majority stake to EQT McGill and Partners founders, management team and colleagues will re-invest alongside EQT, retaining a meaningful ownership stake in the firm going forward as they continue to serve clients globally Maintains commitment to firm’s independent model and culture of ownership, developed organically since its founding in 2019 EQT will partner with Steve McGill and the management team to accelerate organic growth, including via talent recruitment, further development of technology and data capabilities, and expansion of innovative digital solutions EQT and McGill and Partners are pleased to announce that EQT X ("EQT") has entered into a definitive agreement to acquire a majority stake in McGill and Partners from Warburg Pincus for USD 2.0bn. Founder and Chief Executive Officer Steve McGill will continue to lead the firm, while Chairman John Lloyd will remain a

A Race Is Never Won Alone: With La Tavolata, Barilla Brings the Paddock Family Together on the Monza Grid4.9.2026 12:18:00 CEST | Press release

A nearly 100-meter-long dinner table hosted more than 200 guests for an evening celebrating collaboration, trust and the bonds built beyond competition. On Thursday evening ahead of the Formula 1® Italian Grand Prix, Barilla transformed one of the sport’s fastest and most competitive environments into a place where the Paddock Family took center stage. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260902463001/en/ La Tavolata by Barilla on the starting grid of the Monza circuit. More than two hundred people gathered around a single table: drivers, Team Principals, mechanics, engineers, strategists, safety and medical car drivers, personal trainers, tire technicians. The individuals whose collaboration, precision and trust shape every race, every decision and every performance. A nearly 100-meter table set with plates and pasta. With the first-ever Tavolata organized by Barilla and F1, people from across the Formula 1® ecosy

Aqara Showcases The New Smart Lighting Series and Immersive Smart Home Experience at IFA 20264.9.2026 11:30:00 CEST | Press release

Aqara, a global leader in IoT, today announced a new lineup of smart lighting products and a global community platform for smart space creators, at IFA 2026 in Berlin. The announcements reflect Aqara's ongoing vision for AI-driven spatial intelligence — spaces that understand their users and adapt to how people actually live in them. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260904365343/en/ Aqara Showcases The New Smart Lighting Series and Immersive Smart Home Experience at IFA 2026 The new lighting series — spanning indoor and outdoor use — integrates seamlessly with Aqara's existing ecosystem of sensors, switches, and hubs, bringing complete whole-space lighting scenarios and automated controls to life. The new Aqara products showcased include the Floor Lamp T1, LED Downlight T2, LED Strip T2, Outdoor String Lights H1, and Permanent Outdoor Lights H1. In addition, the company will present Aqara Builder, a platform fo

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
World GlobeA line styled icon from Orion Icon Library.HiddenA line styled icon from Orion Icon Library.Eye