Brazilian Securities and Corporate Laws do not give shareholders a direct cause of action against companies and their officers for securities fraud and similar violations. Instead, they must rely on Articles 186 and 927 of the Brazilian Civil
Code which together provide remedy against a person that “commits an illicit act” and “by voluntary act or
omissions, negligence or imprudence, violates rights and causes damages to another.”
Violations of the Securities and Corporate Laws - including false and misleading statements in an issuer’s filed financial statements - may provide the predicate illicit acts necessary for claims under these Articles. To date, however, this approach has not been successfully tested.
What you will learn: