Odebrecht Investor’s Shortcut on Facts Won’t Work, Judge Says

An Odebrecht SA investor suing the Brazilian conglomerate for securities fraud related to a bribery scheme shouldn’t be allowed to use facts from a similar case against the company unless independently substantiated, a magistrate judge recommended.

The contested allegations were deemed established, or proven, in an earlier lawsuit as a court sanction for Odebrecht’s failure to turn over all the relevant documents in its possession, said Magistrate Judge Barbara Moses of the US District Court for the Southern District of New York. They weren’t “actually litigated” and therefore can’t be used by the institutional investor in the second case to ...