Brazil to Boost Investor Protections Two Years After Americanas

Two years after the Americanas SA scandal shuttered Brazil’s credit markets, the government plans to introduce mechanisms that protect investors from corporate wrongdoing and properly compensate them for damages.

Marcos Pinto, economic reforms secretary at Brazil’s Finance Ministry, told Bloomberg that his priority for 2025 is to enact a law that helps minority shareholders access courts in the case of unlawful conduct.

The bill, currently in the lower house, gives investors the right to file a collective civil liability action if controlling shareholders break the law. If convicted, they must pay the plaintiff 20% of any financial penalty.

“Our mechanisms ...