Peruvian construction company facing US class action for Odebrecht bribery links
Graña y Montero is facing potential class actions in the US for its alleged links to the Odebrecht bribery scandal.
Graña y Montero is a Peruvian construction and infrastructure company listed in the NYSE where it IPOed in 2012. As such, it is subject to federal regulations in the US.
The complaint alleges that through the period between July 24, 2013 and February 24, 2017, Graña y Montero failed to disclose it was aware that its Brazilian partner Odebrecht paid bribes to former Peruvian President Alejandro Toledo to win construction work on a road.
News of the alleged involvement broke in February, when Reuters published an article highlighting a report that Graña was aware of about $20 million in bribes paid to former Peruvian President Alejandro Toledo by Odebrecht. On this news, shares of Graña fell over 34%. The company denied knowing about any bribes and reiterated its willingness to continue collaborating with the investigation.
US law firms Levi & Korsinsky in New York and Lundin Law in Los Angeles have sought to represent shareholders potentially affected by this issue.
