Lava Jato whistleblowers reach deal with US Justice Department.
Former Petrobras manager Pedro Barusco and businessmen Augusto Ribeiro de Mendonça Neto, of Toyo Setal, and consultant Júlio Camargo, who cooperated with the Lava Jato corruption investigation in Brazil, have reached an agreement to provide information in the United States about the corruption scheme at Petrobras. The New York court has scheduled for September 19th the trial of lawsuits filed by American investors who bought Petrobras shares and felt harmed by the devaluation of those shares after the corruption scandal revealed by Lava Jato; they are seeking damages that, combined, could reach up to US$90 billion.
247 - Former Petrobras manager Pedro Barusco and businessmen Augusto Ribeiro de Mendonça Neto, of Toyo Setal, and consultant Júlio Camargo, who cooperated with the Lava Jato corruption investigation in Brazil, reached an agreement to provide information in the United States about the corruption scheme at Petrobras. All obtained full immunity and will not pay fines.
The New York court has scheduled for September 19 the trial of lawsuits filed by American investors who bought Petrobras shares and felt harmed by the devaluation of the shares after the corruption scandal revealed by Lava Jato. The investors are seeking damages that, added together, could reach up to US$ 90 billion.
Americans are expected to come to Brazil to hear testimony from another of the informants in the Lava Jato corruption scandal, money launderer Alberto Youssef, who has not yet reached a plea deal with the American justice system because he is imprisoned. Initially, the money launderer's intention was to obtain a green card, a permanent resident card in the United States.
Last February, Judge Jed Rakoff, responsible for the case in the New York court, denied an appeal filed by the state-owned company, which wanted to prevent lawsuits from being filed by investor groups in an attempt to reduce the size of the litigation. "Notwithstanding the size of Petrobras and its numerous and far-reaching investors, the interests of the class members are aligned," said the judge, adding that the same "misconduct" underlies the claims.
In a statement, Petrobras reported that the claims made by the plaintiff are unfounded and that it is preparing for trial. "The company was a victim of a cartel, as repeatedly acknowledged by the Brazilian authorities conducting Operation Lava Jato," it said.
The statement also says: “Before the investigations became public, the company was unaware of the occurrence of illegal acts and episodes of corruption involving former employees. The company is systematically cooperating with the investigations and taking all necessary measures to repair the damages it suffered as a result of the criminal actions of this cartel.”