Minority Shareholders Denounce Brazil's Americanas for 'Multi-Billion Fraud'

A group representing minority shareholders on Friday filed a complaint with Brazil's securities regulator against Americanas SA after the retailer uncovered "accounting inconsistencies" totaling 20 billion reais ($3.89 billion), Reuters reported. The Abradin association said it was denouncing Americanas for what it called a "multi-billion fraud," while also asking regulator CVM to investigate the retailer's auditor, PwC. Shares in Americanas plummeted more than 75% on Thursday, wiping out 8.4 billion reais in market value after the company's chief executive Sergio Rial resigned, citing the discovery of inconsistencies. "Calling it 'inconsistencies' is nothing more than an attempt to use a euphemism for a multi-billion fraud that not only destroyed the assets of shareholders but also undermined the credibility of Brazil's capital markets," Abradin said in a document seen by Reuters. Read more.