Golar investors believe the company should be informed that a top executive was involved in a corruption case that sent the share price straight down.
Shareholders have taken legal action against Tor Olav Trøim’s Golar LNG. They believe the company has misled investors by failing to disclose the corruption allegations against Hygo boss Eduardo Antonello, Trade Winds writes according to Finansavisen.
Hygo Energy Transition is part of Golar, and was scheduled to be listed in the US as a separate company. Those plans are now on hold.
The share halved in value
Shareholders in Golar have filed a lawsuit in a federal court in New York due to the sharp fall in prices after it became known that Antonello was involved in a corruption case.
The mass lawsuit concerns investors who bought shares in Golar between April 30 and September 24.
On September 24, the stock fell over 32 percent during the day on the Nasdaq index.
On Monday this week, the share fell further almost 11 percent to 6 dollars per share. That is around half of the share price a week ago.
Must have received bribes
Antonello is a partner in Magni Partners, which Trøim owns. He has held leadership positions in Golar and Hygo Energy Transition.
Antonello is suspected of corruption and money laundering in Brazil, which is said to have happened while he was executive vice president of the John Fredriksen-dominated Seadrill.
Antonello is said to have received four million dollars in bribes. The public prosecutor in Brazil says that they have frozen his bank accounts, writes Dagens Næringsliv.
He would not comment on the case to the newspaper last week because it is an ongoing investigation.
Golar wrote in an update on September 24 that the company is aware of the accusations against the Hygo boss. The company writes that the alleged incidents took place before the management position, and that it does not affect his work in Hygo, but that Golar should review the case.
Golar announced the spin-off of Hygo on September 17. Antonello became Executive Vice President of Seadrill in 2012