PetroChina Sued Over Failure to Disclose Corruption

PetroChina Co. (857) was sued by an investor who claims the oil producer violated U.S. securities laws by failing to disclose corruption that exposed it to government investigations and penalties.

Johan Broux, an investor in Belgium, filed the complaint yesterday in Manhattan federal court seeking to represent all buyers of PetroChina securities from April 26, 2012, to Aug. 27 of this year. Broux said PetroChina shares dropped more than 3.5 percent Aug. 28 on news that two Chinese government agencies were investigating company officials for corruption.

In addition to PetroChina, the complaint names as defendants Chairman and President Zhou Jiping, Chief Financial Officer Yu Yibo and two former company executives -- ex-CFO Zhou Mingchun and former Chairman and Chief Executive Officer Jiang Jiemin. Broux seeks unspecified damages.

PetroChina officials in Beijing couldn’t be reached yesterday for comment on the suit.

The case is Broux v. PetroChina Co. Ltd., 13-cv-06180, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Bob Van Voris in New York at rvanvoris@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.