Petrobras accused of fraud in US$221m Washington lawsuit

[WASHINGTON] Petroleo Brasiliero SA was sued over claims it fraudulently concealed ongoing corruption and kickback schemes at the Brazilian oil giant from a Washington firm it persuaded to invest more than US$221 million in a now-foundering off-shore drilling business.

The EIG Management Co funds sued Petrobras in federal court in Washington on Tuesday. Sete Brasil Participacoes SA, the oil drilling business, is failing, and the South American nation's government lacks the money needed for a bailout, two Brazilian officials said earlier this month.

BLOOMBERG