Brazil Securities Commission approves BRL 1.105 million in settlements with CEMIG and DASA investor relations directors over alleged disclosure breaches

The Brazil Securities Commission (CVM) Board accepted two settlement proposals (Termo de Compromisso) to close proceedings involving alleged failures by investor relations directors to promptly disclose material facts, with agreed payments totaling BRL 1.105 million. In one case, Leonardo George de Magalhães, investor relations director at Companhia Energética de Minas Gerais (CEMIG), agreed to pay BRL 705,000 to settle a sanctioning administrative proceeding opened over an alleged failure to immediately publish a material fact following a purported media leak between 18 and 22 November 2023 (potential breach of Article 6, sole paragraph, of CVM Resolution 44). In the other, André Covre, investor relations director at Diagnósticos da América S.A. (DASA), agreed to pay BRL 400,000 to settle an administrative proceeding before any sanctioning case was opened, concerning an alleged failure to disclose a material fact when media reported on 23 May 2024 that a corporate transaction was under negotiation alongside atypical trading in the company’s shares (potential breaches of Article 157(4) of Law 6,404 and Articles 6, sole paragraph, and 3, head provision and paragraph 3, of CVM Resolution 44). In both matters, the CVM’s Office of the Federal Prosecutor found no legal impediment, the Settlement Committee recommended acceptance after negotiations, and the Board followed that recommendation.