Main Menu

Clark Smith Villazor LLP represents asset manager VR Global Partners, L.P. in civil fraud and securities violation claims against Venezuelan state-owned oil company

October 26, 2023

On October 25, asset manager VR Global Partners, L.P. filed an Amended Complaint in the United States District Court for the Southern District of New York, alleging that Venezuelan state-owned oil and natural gas company, Petróleos de Venezuela, S.A. (PDVSA), and its affiliates violated the securities laws and committed fraud in connection with a $7 billion bond swap transaction. The lawsuit alleges that PDVSA falsely represented to VR Global that its $30 million investment in PDVSA senior secured notes was valid and enforceable, while at the same time privately scheming to render the notes void under the Venezuelan Constitution. The lawsuit further alleges that after PDVSA defaulted on the notes, it sought to delay VR Global from foreclosing on the collateral that backed its investment, including by asserting that PDVSA remained willing to comply with its obligations under the notes, petitioning the U.S. Treasury Department, and filing an unsuccessful lawsuit—now on appeal before the Second Circuit.

Comments are closed.