Petrobras Investors Claim PwC Ignored Red Flags of Fraud
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Investors in Petroleo Brasileiro SA, the state-run oil company at the center of a kickback scandal in Brazil, expanded their lawsuit against the company by adding claims that auditor PricewaterhouseCoopers LLP turned a “blind eye” to the fraud and “ignored obvious red flags.”
Petrobras and its senior executives violated provisions of U.S. and Brazilian corporate law, as well as the South American nation’s securities laws, civil code and Securities Commission regulations, according to the revised complaint filed Friday in Manhattan federal court.