SAO PAULO, June 15 (Reuters) - A court in Sao Paulo on Monday ordered IRB Brasil to prove that it has 1 billion reais ($194 million) to reimburse shareholders facing heavy losses from the reinsurer’s shares this year.
The decision of the 2nd Business Court and Arbitration-Related Conflicts of the Sao Paulo Court of Justice partially served a civil suit to compensate shareholders seeking compensation for losses through arbitration.
The plaintiffs estimate that the total losses with the fall of IRB’s shares are in the order of 4 billion reais. The losses arose after questions emerged about the company’s accounting practices.
The judge denied a request for immediate removal of the entire board of IRB Brasil.
($1 = 5.1557 reais)
Reporting by Paula Arend Laier; Editing by Leslie Adler