September 8, 2016 / 9:07 PM / 2 years ago

Brazil gun maker Taurus explains silence on Yemeni trafficker case

SAO PAULO, Sept 8 (Reuters) - Forjas Taurus SA, Latin America’s largest gun maker, told Brazil’s securities regulator on Thursday it had not notified investors about an alleged sale to a known Yemeni arms trafficker because the company was not accused in the case.

Taurus confirmed on Monday a Reuters report that two former executives had been charged over a deal in 2013 that allegedly sent arms to Yemen’s civil war, but the company said it was only a concerned party in the case.

Securities regulator CVM asked Taurus on Monday why it had not previously sent a “Material Fact” filing on the matter.

“At that point the company did not see the release of a Material Fact as applicable, since the company was not a party in the case, which was sealed by the courts and in the initial stage against third parties,” wrote Taurus.

Taurus shares fell more than 2 percent in early trading before rebounding to a 2 percent gain on Thursday. The stock’s 8 percent drop on Tuesday was its worst daily fall in 16 months. (Reporting by Brad Haynes; Editing by Alan Crosby)

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