Simultaneously with the Final Agreements, we finalized a TCAC with the MPF and the CVM to settle any potential claims that could be brought in court (acao civil publica) or through administrative proceedings (processo administrativo sancionador) in Brazil. The TCAC has also been approved by the relevant authorities and is fully effective.
Under the TCAC, we acknowledged violations of certain Brazilian laws between 2007 and 2011 and agreed to:
- Pay a total of R$ 64 million to a Brazilian federal fund (Fundo de Defesa dos Direitos Difusos), as disgorgement of illegal profits, damages, and as a deterrent against similar practices. The amount payable under the TCAC is to be deducted from the amount payable under the Final Agreements.
- Cooperate with the MPF and the CVM in lawsuits and administrative proceedings against individuals arising out of the acts acknowledged in the TCAC.
Under the TCAC, the MPF and the CVM acknowledged that (i) we voluntarily conducted a broad internal investigation, which assisted in uncovering facts that were the subject of criminal and administrative investigations, and (ii) we approached the Brazilian authorities pro-actively and in good faith, and they agreed that:
- The MPF will not file suit (acao civil publica andacao de improbidade administrativa) against us arising out of the acts we have acknowledged and will terminate proceedings now underway.
- The CVM will end an ongoing administrative proceeding arising out of the acts we have acknowledged.
- The MPF and the CVM will inform other Brazilian federal agencies of the terms of the TCAC and cooperate with us in seeking that these agencies take the TCAC into consideration should other proceedings regarding the acknowledged acts be brought.
The Final Agreements and the TCAC represent the conclusion of the internal investigation of allegations of noncompliance with the FCPA and certain Brazilian laws in some aircraft sales outside Brazil.
Jose Antonio de Almeida Filippo
Executive Vice-President and Chief Financial Investor Relations Officer
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/embraer-sa-material-fact-300349914.html
SOURCE Embraer S.A.