Brazilian Securities Comission Condemns Eike Batista to Pay US$ 6.3 million Fine

06/14/2017 - 11h50

Businessman Eike Batista was fined R$ 21 million (US$ 6.3 million) by the Brazilian Securities Commission (CVM), accused of using inside information on the sale of OSX company shares in 2013.

Batista's lawyer, Darwin Corrêa, said he would appeal to the National Financial System´s Council of Appeal.

At the trial, the CVM evaluated the sale of 9.9 million OSX shares by Batista on April 19, 2013, a month before the company disclosed a business plan that brought down its market value.

The prosecution says that, knowing that the plan would be disclosed, Batista avoided a loss of R$ 10.5 million (US$ 3 million), which would be the amount collected if he sold the shares after the disclosure of the document.

	Jorge Silva/Folhapress
	Brazilian businessman Eike Batista

In the business plan, OSX acknowledged that it would not have enough orders to support the shipyard it designed for the port of Açu (northern Rio de Janeiro) and announced the review of future growth projections.

In November of that year, the company filed for judicial recovery. The defense claims that Batista was forced to sell shares to meet the deadline stipulated by the São Paulo Stock Exchange to adjust the volume of securities traded in the market to the current rules.

Translated by MARINA DELLA VALLE

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