CVM forms majority to absolve Batista brothers – 05/29/2023 – Market

The Securities and Exchange Commission (CVM) formed a majority this Monday (29) to acquit brothers Joesley and Wesley Batista in a case involving alleged price manipulation and misuse of privileged information (insider trading) in deals carried out by JBS and the parent company. J&F Investments.

This lawsuit, in addition to two others on trial, were opened after O Globo columnist Lauro Jardim reported on May 17, 2017 that Joesley had denounced then-president Michel Temer (MDB) and recorded excerpts of a conversation with the representative .

The news brought down the markets the next day —the Stock Exchange fell 8.8%, to 61 thousand points—, in the episode that became known as “Joesley Day”. The accusation in the CVM lawsuit stated that the Batista brothers would have operated in the market considering the impact that the news would cause.

The president of the CVM, João Pedro Nascimento, and the directors Otto Lobo, João Accioly and Alexandre Rangel voted for the acquittal. Director Flávia Perlingeiro asked for a review of the process, suspending the official result.

Case rapporteur Otto Lobo voted to fine J&F R$500,000 for having traded JBS shares in a period prohibited by virtue of the company’s Share Buyback Program.

In a note, J&F, the businessmen’s holding, said that “the CVM judgment undoes the injustice committed against the group and the businessmen, ratifying the fairness and legitimacy with which J&F, its executives and controlled companies have always operated in the financial market “.

Joesley and his brother Wesley were arrested in September 2017. About six months later, they were both released.