Investment giant Pacific Investment Management Co. (Pimco) has filed a lawsuit against Brazil’s Petrobras for allegedly knowing about a corruption scheme that has rocked the company and landed several executives in jail.
According to the Wall Street Journal, the suit was filed last Friday in the Southern District Court of New York and alleges Petrobras executives knew about graft and bribery schemes tied to company contracts, knowledge Pimco says calls “the integrity of the company as a whole” into question.
About a dozen other plaintiffs are included in the lawsuit.
Neither Petrobras nor Pimco would comment on the matter, the Journal added.
Further details about the lawsuit have not been released yet.
Pimco is just the latest group to sue Petrobras for issues tied to the ongoing corruption probe.
Last month, the Bill and Melinda Gates Foundation Trust filed a lawsuit against Petrobras and its auditor, alleging the graft scandal caused the trust to lose millions of dollars.
New York-based law firm Wolf Popper filed a class action lawsuit against the company in December, claiming Petrobras issued false and misleading statements to investors by failing to disclose “a culture of corruption that consisted of a multi-billion dollar money laundering and bribery scheme” dating back to 2006.
Brazilian prosecutors allege that Petrobras employees collaborated with other firms to inflate the cost of contracts and skim off the excess funds, a scheme that also allegedly included bribery and money laundering.
Petrobras has defended itself against the allegations, claiming that it was also a victim of fraud.
Brazilian federal prosecutor Deltan Dallagnol told Reuters earlier this month that Petrobras losses tied to corruption will likely reach over $5.3 billion, or about 20 billion reais.
The scandal has also ensnared several engineering and service firms.
Former Brazilian president Luiz Inacio Lula da Silva is being investigated for allegedly using his influence to help Brazilian construction firm Odebrecht win overseas business.
Brazilian prosecutors officially charged Marcelo Odebrecht, CEO of Odebrecht SA, with corruption, money laundering and criminal conspiracy in July.
A probe by an independent corporate investigator published earlier this month found that Norway-based Sevan Marine “more likely than not” made improper payments to win business with Brazil’s Petrobras.
The investigation, led by Advokatfirmaet Selmer DA and commissioned by Sevan’s board, focused on how contracts with Petrobras were obtained from 2005 to 2008.
The company will make evidences and documentation secured in the investigation available to the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime and it has contacted relevant authorities in the United States, United Kingdom and Brazil.
Sevan’s board of directors is currently assessing further actions and the implications of the findings.