Brewer & Pritchard Files Lawsuit Against Comerica Inc. For Banco Lavra.HOUSTON -- A small Brazilian bank is seeking $70 million in damages from Comerica Inc. (NYSE NYSE See: New York Stock Exchange :CMA CMA - Concert Multithread Architecture from DEC. ) based on allegations that the Detroit-based bank failed to live up to its agreement for a business combination. An amended complaint amended complaint n. what results when the party suing (plaintiff or petitioner) changes the complaint he/she has filed. It must be in writing, and can be done before the complaint is served on any defendant, by agreement between the parties (usually their lawyers), was filed this month by Attorney Mark Brewer Mark Brewer may refer to:
The complaint claims that Comerica agreed to acquire Banco Lavra and entered into an interim agreement called a "strategic alliance." It then required Banco Lavra to abandon its successful retail business. The Brazilian bank was to become Comerica's arm of international finance, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the petition. Banco Lavra, headed by brothers Valdner and Marcio Papa, had a solid retail banking operation with a very profitable international financial division. The lawsuit alleges that Comerica promised to expand the international finance division through its contacts with large US and Latin American corporations doing business in Brazil. Comerica's Doug Ransdell, senior vice president, international finance, and other Comerica bankers met with Lavra's owners in April 1998 to discuss terms of the acquisition. The bank's value was agreed to be $34.5 million, based on a multiple of Lavra's earnings, according to the complaint. In the spring of 1998, Comerica met with the Brazilian Central Bank concerning the acquisition of Banco Lavra. And in July 1998, a third meeting was held to finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... the discussions about the acquisition of Lavra by Comerica. Shortly after this meeting, the complaint alleges that Comerica's board of directors told its officers it had no intention of acquiring the Brazilian bank. But Ransdell proceeded with the acquisition anyway, according to Brewer. "We allege To state, recite, assert, or charge the existence of particular facts in a Pleading or an indictment; to make an allegation. allege v. that Comerica did not disclose that its executive officers had no intention of obtaining board of directors approval for any acquisition of a bank in Brazil," said Brewer. The lawsuit alleges that by early October 1998, the Papas were told that Comerica would sign a strategic alliance to show their "good will and good faith." Comerica continued to lead Banco Lavra's shareholders to believe that the acquisition was proceeding as planned, and the strategic alliance agreement would serve as a "bridge" to the acquisition, the complaint states. The Papas said in the lawsuit that Comerica insisted that Lavra's Sao Paulo operation become a lean business with its (most profitable) retail business eliminated and its staff and overhead structure altered to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the international finance business model that Comerica had promised to bring to Banco Lavra. "Ransdell admitted he moved ahead with the acquisition despite the board's objection. Now the Papas are bankrupt," said Brewer. |
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