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Petrobras: Kessler Topaz Secures Significant Recoveries for Investors in Securities Fraud Opt-Out Actions Against Brazilian Oil Giant Embroiled in Historic Corruption Scandal

Kessler Topaz represented several prominent U.S. and overseas mutual funds and pension funds as opt-out plaintiffs in securities fraud actions in Manhattan federal court against Petrobras, Brazil’s state-owned oil conglomerate.  These cases arose out of a decade-long bribery and kickback scheme that has been called the largest corruption scandal in Brazil’s history and resulted in dozens of criminal convictions. The plaintiff funds alleged that Petrobras concealed bribes to senior officers and government officials and improperly capitalized these bribes as assets on the company’s books in order to inflate the value of its oil refineries.

The Honorable Jed S. Rakoff of the U.S. District Court for the Southern District of New York appointed Kessler Topaz to serve as liaison counsel to the Court on behalf of the 27 opt-out plaintiffs in this sprawling litigation.  In October 2015, Judge Rakoff denied Petrobras’ motions to dismiss our clients’ complaints.  Following expedited discovery and with trial on the horizon, these actions were favorably resolved less than a year later as part of a confidential settlement.  

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