JBS international investors filed a lawsuit in the United States against the company and its executives Gilberto Tomazoni and Wesley Batista. The lawsuit is led by Leonforte Holdings, represented by the American law firm Rosen Law Firm, and filed Wednesday in federal court in Pennsylvania.
Rosen Law released an “equity alert” announcing it is investigating potential securities claims on behalf of shareholders of BRF S.A. (NYSE: BRFS) resulting from allegations that BRF may have issued materially misleading business information to the investing public”. The law firm note says that news outlets recently reported that Brazilian federal police “raided the offices of BRF and dozens of other meatpacker following a two-year investigation into alleged bribery of regulators to subvert inspections of their plants”.
The probe, known as “Operation Weak Flesh,” had uncovered about 40 cases of meatpackers who had bribed inspectors and politicians to overlook unsanitary practices such as processing rotten meat and running plants with traces of salmonella. Police arrested three BRF employees, as well as 20 public officials. On this news, shares of BRF fell sharply during intraday trading on March 17, 2017. Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by BRF investors.