Eletrobras sued by Providence over Brazilian bribery scheme

PROVIDENCE – Brazil’s state-owned electric company, Centrais Eletricas Brasileiras SA, was sued by the city of Providence over claims it failed to tell investors of a massive bribery and kickback scheme.

Providence filed the lawsuit Saturday in Manhattan federal court over money allegedly siphoned from a nuclear reactor and two dam projects.

According to the complaint, billions of dollars paid by Eletrobras to construction and service contractors were diverted to company executives and to Brazil’s Worker’s Party.

The filing may be the first against Eletrobras by an institutional investor in the U.S. An earlier lawsuit was filed in the same court by an individual Eletrobras investor.

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Providence proposes to represent all investors who bought Eletrobras securities between Aug. 17, 2010 and June 24, 2015.

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