After discovering malfunctions in the operation of Taurus pistols sold to São Paulo state from 2007 to 2011, the São Paulo government said the company would not be able to participate in bids and contracts for state of São Paulo for two years as a penalty
In addition to the suspension, the company must pay a fine of almost R$ 12.7 million (US$ 2.5 million), which corresponds to 20% of the armament's value that presented problems.
The company's shares accumulated a drop of 1.9% in the trading sessions of Monday (27) and Tuesday (28) when they ended up quoted at R$ 5.59.
The lawsuit goes back to 2016. The company claims that the evidence of the process is arbitrary "as an alleged technical expertise proven to be null" and that the armament guarantee was fulfilled when necessary.
Taurus also argues that "there is no evidence that the preventive overhaul of almost all pistols by Taurus between 2013 and 2015 was not useful and effective in ensuring the proper functioning of armaments security mechanisms".
Also for failures in pistols supplied to the local Military Police, Taurus is suspended from bidding in the Federal District for one year, until May 2021.
Translated by Kiratiana Freelon