On March 17, 2017, BRF’s offices were raided by Brazilian Authorities following a multi-year investigation called “Operation Weak Flesh.” The investigation concluded that between 2012 and 2017, BRF bribed food regulators, inspectors and politicians to avoid food safety checks, unsanitary food practices and to falsify test results for safety practices in its industrial processes.
As a result of the raid, BRF’s share price fell from R$40.00 per share on March 16, 2017, to R$35.58 per share on March 22, 2017. On February 23, 2018, BRF disclosed that Operation Weak Flesh had caused a “very serious problem” for the company, and that disruptions in its production processes made it difficult to distribute products. In the wake of this revelation, BRF’s share price fell about 8%, from R$30.98 on February 22, 2018 to R$28.40 on February 23, 2018.
Soon after, on March 5, 2018, Brazilian Authorities arrested BRF’s former CEO and other executives on charges that they were of aware of the fraud and bribery activity. Following their arrests, BRF’s stock price fell from R$30.84 on March 2, 2018, to R$22.83 on March 29, 2018, a decrease of almost 43%, representing a total market capitalization loss of almost R$14 billion/US$4.05 billion.
DRRT is currently soliciting investors to join their recovery efforts.
The planned arbitration is separate from the U.S. securities class action filed against BRF in 2018 on behalf of investors who purchased the company’s American Depositary Receipts (ADRs). Participating in arbitration in Brazil will not preclude your recovery in the U.S. class action (and vice versa) as the proceedings are separate and cover different securities..
DETERMINING ELIGIBILITY & COSTS
Shareholders are eligible to participate if they transacted in BRF S.A. shares from April 4, 2013 – November 29, 2019 and have at least $100,000 in eligible losses.
Arbitration proceedings in Brazil are private and confidential. As the opposing parties, the company and any other defendants will know your identity. However, there will be no public disclosure of your involvement absent a violation of the arbitration rules or an application to the court for some purpose. Should the latter occur, counsel will likely seek further confidentiality protection.
DRRT is proposing to represent investors on a fully-funded, risk free contingency basis. The firm will advance all associated costs and indemnify investors against all risks.
If investors decide to participate in arbitration they must provide DRRT with their transactional data to confirm eligibility and estimate losses. Please contact your FRT Representative or email us email@example.com if you would like to discuss registration in this case.
SETTLED CLAIMS I PASSIVE GROUP I ANTITRUST I FUTURE CLAIMS I OPT-IN MONITORING I OPT-OUT MONITORING
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