March 19, 2020

Brazil beef company JBS shareholders seek US$271 million in damages

Arbitration proceedings have begun against JBS over claims the company misled shareholders after its initial public offering (IPO) in Brazil in 2017, reported Reuters.

The JBS shareholders are seeking 1.4 billion BRL (~US$271 million; 1 BRL = US$0.20) in damages against the company, according to law firm DRRT and co-counsel Finkelstein Advogados.

The shareholders said JBS provided incorrect and or confusing information to investors after its IPO, claiming that the company is corrupted.

Brazilian based JBS is the world's biggest meatpacker. The company refused to comment on the proceedings as it is confidential.

This is the latest in JBS legal issues after the company's owners signed a plea agreement with Brazilian prosecutors over illegal payments to politicians back in 2017.

In February 2020, JBS said it aimed to list its international operations in the US without investment.

-      Reuters