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Corporate Investigations Newsletter – August 2026

September 11th, 2026

The Corporate Investigations Newsletter aims to provide information on the main media news, trends, cases, and legislation concerning compliance, white-collar crime, competition and international trade matters in Brazil and abroad. This newsletter is for informative purposes only, and should not be used for decision making. Specific legal counseling may be provided by our legal team.

Enjoy reading!

Compliance and Investigations, White-Collar Crime, Competition, and International Trade and Customs teams.

Federal Police crack down on bid-rigging and corruption in public contracts

In August, Brazil’s Federal Police launched Operation Terra Arrasada to investigate an alleged bid-rigging scheme involving the sale of heavy machinery to public agencies. The investigation found that companies within the same economic group colluded on public tenders, submitted prearranged bids, and employed mechanisms to restrict competition and influence tenders.

The investigations also uncovered evidence of improper payments to public officials and money-laundering practices related to the contracts under investigation. Brazil’s Federal Police explained that the contracts executed between the companies and the government exceed BRL 400 million and involve hundreds of municipalities. As part of the precautionary measures, the court barred certain companies from participating in public tenders and contracting with public entities.

See the details: PF combate grupo criminoso responsável por fraudes em licitações

Company becomes ineligible after appealing disqualification from electronic auction

Brazil’s Federal Court of Accounts (TCU) deemed a company ineligible to participate in bidding processes for one year after reviewing the company’s appeal against its disqualification from an electronic auction. The TCU found evidence of bid rigging after conducting a more thorough review of the documentation submitted to prove its technical qualifications.

The decision serves as a warning: contesting disqualification from public tenders can lead to a more rigorous review of documentation and the discovery of previously undetected irregularities. The case also reinforces the TCU’s stance on the legitimacy of measures to verify bidders’ submitted information.

Upon reviewing the case, the TCU found discrepancies in the dates and execution of the services allegedly provided. The authority concluded that the evidence was sufficient to demonstrate the intent to create a false record of technical qualifications. As a result, the company is prohibited from participating in tenders and entering into contracts with the Federal Government for a one-year penalty period.

See the details: TCU declara inidônea empresa que questionava sua desclassificação em pregão.

Operation Arena: authorities investigate illegal transfer of funds abroad and money laundering in the betting sector

The Brazilian Federal Revenue Service participated in Operation Arena, alongside Brazil’s Federal Police and the Federal Prosecutor’s Office, to investigate a business group for alleged tax evasion, illegal transfer of funds abroad, and money laundering. Investigations point to the use of complex corporate and financial structures maintained in Brazil and abroad to give an appearance of legitimacy to transactions in the fixed-odds betting and gambling sector.

Authorities stated the group allegedly used domestic and foreign companies, foreign exchange transactions, payment institutions, and digital assets to impede the identification of the transfers’ origin and destination. The court approved search and seizure warrants and ordered the seizure of assets totaling nearly BRL 1 billion.

See the details: Receita Federal participa da Operação Arena contra grupo investigado por sonegação fiscal, evasão de divisas e lavagem de dinheiro.

Brazilian authorities investigate irregularities in public works in Paraíba

The Brazilian Office of the Comptroller-General (CGU) participated in an operation with the Federal Police (PF) and the Federal Prosecutor’s Office (MPF) to investigate alleged irregularities in the contracting and execution of public works in Paraíba. The investigation stemmed from signs of wrongdoing involving public funds earmarked for infrastructure projects, including suspicions of fraud in public tenders and contract performance.

The investigation verified the legality of the contracts and examined potential concerted action between public and private sectors to gain undue advantage. The operation combines the efforts of oversight and law enforcement authorities to investigate potential acts of corruption and misappropriation of public funds.

See the details: CGU, PF e MPF apuram possíveis crimes cometidos na contratação e execução de obras na Paraíba

Brazil’s Superior Court of Justice amends its bylaws to regulate the relevance requirement for special appeals

Special appeals must now include a specific and substantiated section demonstrating the economic, political, social, or legal relevance of the federal issue under discussion. The measure aims to prioritize the STJ’s efforts on matters of greater societal impact and on ensuring the uniform interpretation of federal legislation.

The new requirement came into effect on September 3 after an amendment to the Bylaws of the Superior Court of Justice (STJ), which regulated the “relevance filter” established by Law No. 15.484/2026. Relevance must be demonstrated even when it is presumed by the Brazilian Constitution.

The amendment also redistributes powers among the STJ’s adjudicating bodies and expands the duties of presidents and rapporteurs. They may decline to hear appeals that fail to demonstrate relevance or concern matters that the STJ has already recognized to be irrelevant.

See the details: Tribunal publica regras para exame da relevância; novo regime começa a valer no próximo dia 3

Brazil’s Federal Supreme Court discusses the constitutionality of the Anti-Faction Law and debates measures to combat organized crime

The Brazilian Federal Supreme Court (STF) held a public hearing to discuss the constitutionality of the Anti-Faction Law^[1], which established the Legal Framework for Combating Organized Crime.

The main issues debated during the hearing included:

Suspension of the political rights of pre-trial detainees
Automatic pretrial detention for suspected members of criminal organizations
Removal of murder cases from the jurisdiction of jury courts
Use of videoconferencing as the standard method for holding custody hearings
Restrictions on social security benefits for the dependents of incarcerated individuals

Throughout the debates, several entities argued that these measures were incompatible with constitutional criminal guarantees.

LEGAL CONTEXT

The STF’s public hearing took place in the context of Direct Actions for the Declaration of Unconstitutionality (ADIs) Nos. 7952, 7956, 7957, and 7958, which challenge the constitutionality of numerous Anti-Faction Law provisions.

The two-day hearing was conducted by Justice Alexandre de Moraes, the reporting justice in the cases. The event brought together public officials, experts, and representatives of civil society, whose statements will inform the Court’s plenary judgment.

In addition to the hearing, the STF held meetings with representatives of the Public Prosecutor’s and Public Defender’s Offices to address the impacts of the new legislation, including intelligence sharing, the creation of specialized structures to combat organized crime, and mechanisms to protect judges.

Finally, the institutions agreed to hold another meeting focused on proposals for legislative and institutional improvements.

See the details: STF retoma debates sobre a Lei Antifacção

^[1]Law No. 15.358/2026.

New resolution strengthens enforcement of alcohol and drug testing in Brazilian traffic

Brazil’s National Traffic Council (CONTRAN) updated the enforcement procedures under Brazil’s DUI Law (Lei Seca), replacing regulations in force since 2013. The main changes include rules governing preliminary blood alcohol testing and the establishment of more objective criteria for identifying psychomotor impairment.

BREATHALYZER PRE-TEST

The new regulations allow the use of breathalyzers exclusively for the initial screening of drivers, who must then undergo a definitive blood alcohol test. The preliminary test result alone does not constitute a traffic violation.

PSYCHOMOTOR IMPAIRMENT

The regulation also establishes more objective criteria for identifying psychomotor impairment, requiring at least two signs indicative of the driver’s condition, such as drowsiness, aggression, loss of balance, or disorientation.

In such cases, drivers are subject to the penalties and administrative measures prescribed by traffic legislation and may be charged with driving under the influence.

In addition, the new regulations authorize the use of drug testing devices designed to detect other psychoactive substances.

See the details: Resolução nº 1.031/2026.

Brazil’s Superior Court of Justice recognizes attempted extortion when the victim does not comply with the perpetrator’s demand

The Third Section of the Superior Court of Justice (STJ) ruled that extortion may be committed in the form of an attempted offense when the victim does not submit to the demands of the individual making the threats.

In the case under review, the defendant was convicted of demanding payment in exchange for not disclosing intimate photos of the victims. Since the victims immediately contacted the police and did not comply with the demands, the defendant was arrested in the act, and the STJ held that the extortion was not consummated.

At the trial, Reporting Justice Ribeiro Dantas’s understanding prevailed, establishing that a mere threat or psychological coercion is not enough for the consummation of the offense. Although securing an economic advantage is not required to consummate the extortion, the victim must, as a result of the threat, act, refrain from acting, or tolerate some conduct.

See the details: full text of the ruling.

Brazil’s Federal Supreme Court expands the scope of protective measures under the Maria da Penha Law

Brazil’s Federal Supreme Court (STF) ruled that emergency protective measures under the Maria da Penha Law may be granted in any case of gender-based violence against women, even when there is no domestic, family, or intimate relationship between the perpetrator and the victim.

The unanimous decision was issued in Extraordinary Appeal No. 1.537.713 as a general repercussion precedent (Topic 1.412), meaning that this understanding must be followed by all Brazilian courts in similar cases.

According to the reporting Justice Edson Fachin, what defines gender-based violence is the victim’s “female status,” rather than the setting in which it occurs. Fachin also emphasized that restrictive interpretations of the Maria da Penha Law are inconsistent with Brazil’s international commitments — especially the Convention of Belém do Pará, which adopts a broader concept of gender-based violence, encompassing both the public and private spheres, regardless of the relationship between the perpetrator and the victim.

The STF also ruled that requests for protective measures must be considered whenever the victim is at immediate risk, even if they were initially filed with a court that lacks jurisdiction. In addition, it recognized that these measures may be applied in cases of gender-based political violence (Article 326-B of the Electoral Code).

See the details: Lei Maria da Penha: medidas protetivas se aplicam fora do contexto doméstico, decide STF.

CADE’s Tribunal upholds approval for Grupo Equatorial’s stake in Copasa

The Tribunal of Brazil’s Administrative Council for Economic Defense (CADE) has dismissed the appeal filed by Sindágua-MG^[1] and upheld the unconditional approval of the acquisition of 30% of the share capital of Companhia de Saneamento de Minas Gerais (Copasa) by Gerais Saneamento S.A., a member of Grupo Equatorial. The transaction had already been approved by CADE’s General Superintendence.

In reviewing Sindáqua-MG’s arguments, the Tribunal assessed potential competitive impacts related to future bids in the sanitation sector, including allegations of interlocking interests between Grupo Equatorial and other economic players in the sector.

According to the Reporting Commissioner, José Levi, there is no horizontal overlap between the companies at the municipal level. At the national level, while acknowledging that they may compete in future concessions, auctions, and privatization procedures, Commissioner Levi found no evidence of vertical integration, reduced bidding competition, harm to benchmark regulation, anticompetitive portfolio effects, or competitive risks associated with data use.

See the details: Cade aprova entrada do Grupo Equatorial no capital da Copasa

^[1] Union of Workers in the Water Purification and Distribution Industries and Sewage Services of the State of Minas Gerais.

CADE’s Tribunal upholds interim measure against Secipe

The Tribunal of Brazil’s Administrative Council for Economic Defense (CADE) has fully upheld the interim measure imposed by the General Superintendence against Serviço de Cirurgia Pediátrica S/S (Secipe). The case stems from an investigation into the alleged influence on the adoption of uniform commercial conduct among pediatric surgeons affiliated with the association in Campo Grande, Mato Grosso do Sul.

The investigation addresses evidence of centralized business negotiations and the collective price-fixing of medical fees, practices that influenced surgeons to adopt uniform business conduct. Secipe argued that its right to defense was impaired and that it did not meet the requirements for the interim measure to be maintained.

According to the Reporting Commissioner, Carlos Jacques, the issues that justified the measure remain valid, particularly the evidence of the conduct under investigation and the risk of harm to competition and consumers during the evidentiary phase. Commissioner Jacques emphasized that the corporate form cannot be used to restrict competitive autonomy and recommended expanding the market test to include hospitals in the region.

See the details: CADE’s Tribunal upholds the interim measure against Secipe

CADE’s Tribunal partially grants Itaú’s motion but upholds the interim measure

The Tribunal of Brazil’s Administrative Council for Economic Defense (CADE) has decided to admit the motion for clarification filed by Itaú Unibanco S.A. While correcting a contradiction in the calculation of the daily fine for non-compliance, the Tribunal denied the motion to suspend the effects of the interim measure imposed by the General Superintendence.

Reporting Commissioner Carlos Jacques dismissed the bank’s claims of omission, ambiguity, and contradiction in its motion. The consolidated understanding was that the deadline for implementing the measures had already been clarified, and that the determinations regarding ABECS codes remain valid, requiring the use of available standardized mechanisms, accompanied by appropriate supplementary information for consumers and digital wallet operators when communicating the reasons for refusing transactions.

Accordingly, the Tribunal fully upheld the effects of the previously issued decision, addressing only the contradiction in how the daily fine is calculated in the event of non-compliance, and setting the daily fine at BRL 250,000.

See the details: Cade mantém decisão sobre medida preventiva em caso envolvendo Itaú

American Airlines’ investment in Azul will be reviewed by CADE’s Tribunal following an appeal by ABRA

The General Superintendence of Brazil’s Administrative Council for Economic Defense (CADE) has granted unconditional approval for American Airlines to acquire an approximately 8% minority stake in Azul’s capital stock as part of the company’s financial restructuring.

After reviewing overlaps in passenger transport on routes between São Paulo, Rio de Janeiro, Miami, and Orlando, as well as cargo transport between Brazil and the United States, the General Superintendence concluded that the transaction posed no risks or harm to consumers or competition. The authority clarified that the market remains subject to competition from both domestic and international companies, and that the companies’ safeguards would suffice to prevent improper access to or the exchange of competitively sensitive information.

Subsequently, Abra Group Limited, an interested third party admitted to the proceeding, appealed the decision, arguing that the review should consider the simultaneous presence of American Airlines and United Airlines in Azul’s corporate governance structure. Abra claimed that this structure could pose competitive risks stemming from access to sensitive information, diminished competitive independence, and the coordinated exercise of market power. Abra also highlighted its presence in the sector through Gol Linhas Aéreas Inteligentes S.A. and pointed out competitive risks associated with the proposed governance model for the company in the transaction under review. The case was assigned to Commissioner Camila Cabral as rapporteur.

See the details: SG/Cade emite parecer pela aprovação sem restrições de investimento da American Airlines na Azul

Brazil’s Federal Supreme Court recognizes the legitimacy of the Soy Moratorium and orders the closure of proceedings at CADE

Brazil’s Federal Supreme Court (STF) concluded the joint hearing of Direct Actions for the Declaration of Unconstitutionality (ADIs) Nos. 7,774 and 7,775 and recognized the constitutionality of the Soy Moratorium — a private agreement signed in 2006 between the government, trading companies, associations, and NGOs, committed to not purchasing soy grown in deforested areas of the Amazon.

In addition to ruling on the constitutionality of state laws related to the exclusion of tax benefits and the granting of land to signatories of the initiative, the STF ordered the dismissal of all judicial and administrative proceedings that directly or indirectly challenge the agreement’s legitimacy, including ongoing proceedings before the Administrative Council for Economic Defense (CADE).

By majority vote, the STF converted the referendum into a review of the merits and followed the vote of Justice Flávio Dino, the reporting justice for ADI No. 7,774, which was fully supported by Justices Alexandre de Moraes, Cristiano Zanin, Cármen Lúcia, and Gilmar Mendes, and partially supported by Justice Edson Fachin. The leading vote partially upheld actions seeking to recognize the constitutionality of excluding tax benefits provided for in state regulations, provided that the principles of annual and 90-day tax anteriority are observed, where applicable.

Furthermore, the STF concluded that the agreement was executed as a legitimate exercise of free enterprise and did not constitute a cartel or an unlawful practice. The majority of the Justices agreed that the initiative yielded economic and environmental benefits and that its review was necessary because the challenged state laws directly affect the economic agents who signed the moratorium. With this understanding, the STF ordered the dismissal of judicial and administrative disputes concerning the moratorium’s legitimacy, emphasizing the need to foster legal certainty and consistent interpretation of the matter.

On August 21, CADE’s General Superintendence ordered the closure of the administrative proceedings investigating alleged competition violations related to the Soy Moratorium. This decision is still pending review by CADE’s Tribunal.

See the details: STF reconhece validade da Moratória da Soja e determina fim de ações sobre acordo

Brazil and the US resume trade negotiations following phone call between Lula and Trump

Brazil and the United States are expected to resume trade negotiations in a meeting between representatives of the Ministry of Development, Industry, Trade and Services (MDIC), the Ministry of Foreign Affairs (MRE), and the Office of the US Trade Representative (USTR). The initiative was coordinated by U.S. Trade Representative Jamieson Greer, following a telephone conversation between Presidents Luiz Inácio Lula da Silva and Donald Trump.

The meeting date will still be set by the teams, but it should feature MDIC Minister Márcio Elias Rosa and representatives from the MRE and the USTR. This move signals a step forward in negotiating solutions on issues of mutual interest to both countries.

See the MDIC’s press release for more information.

New safeguard investigations

In August 2026, the United Kingdom and Madagascar notified the World Trade Organization (WTO) of the launch of the following safeguard investigations:

The potential application of safeguards could affect Brazilian exports of products under investigation to these markets.

Updates on antidumping measures and public interest assessments

Below, we highlight the main measures and decisions issued by the Brazilian trade remedy authorities, including information on the proceedings, products concerned, and their respective origins.

Secretariat of Foreign Trade (SECEX)

Review of the countervailing measure applied to imports of PET film originating in India.
- Initiation: CIRCULAR No. 84, DATED AUGUST 27, 2026
- Product: PET films, commonly classified under sub-items 3920.62.19, 3920.62.91, and 3920.62.99 of the Mercosur Common Nomenclature (NCM).

Antidumping investigation into imports of glass fibers originating in China and Egypt.
- Recommendation to impose provisional antidumping duties: CIRCULAR 75, DATED AUGUST 17, 2026
- Product: E and/or E-CR glass fibers in slightly twisted filaments (roving), with a linear density of 100 g/km or more, commonly classified under subheading 7019.12.90 of the NCM.

Public interest assessment of the antidumping measure applicable to imports of single-mode optical fibers originating in China.
- Initiation: CIRCULAR No. 76, DATED AUGUST 17, 2026
- Product: Single-mode optical fibers with a core diameter of less than 11 micrometers, commonly classified under subheading 9001.10.11 of the NCM.

Executive Management Committee of the Foreign Trade Chamber (GECEX)

Review of the antidumping measure applied to Brazilian imports of polyvinyl chloride resins originating in China.
- Extension of the definitive antidumping duty: RESOLUTION GECEX No. 947, DATED AUGUST 4, 2026
- Product: Polyvinyl chloride obtained via the suspension process (PVC-S), commonly classified under NCM subheading 3904.10.10.