shareholders request CEO meeting

05/06/2024 12:11

O Magazine Luiza (MGLU3) called a meeting for May 29th to deliberate on a request made by the founding brothers of Kabum, to open a liability action against the company’s CEO, Frederico Trajano.

Thiago Camargo Ramos and Leandro Camargo Ramos – founders of Kaboom and holders of 1.02% of the total Magazine Luiza actions – claim that Trajan committed accounting fraud that resulted in an accumulated adjustment to shareholders’ equity of R$829.5 million.

In the summons request, attached to the Securities and Exchange Commission (CVM), the brothers state that “after the start of the companies’ integration activities, they alerted Trajano and other company directors of a serious deficiency in inventory accounting control”.

Furthermore, according to the brothers, “Frederick Trajanto obtain satisfaction of a personal desire for revenge against the Ramos brothers, deliberately and intentionally caused the company to allow a tax credit to expire and definitively perish, recognized by a final and unappealable ruling, in the amount of approximately R$40 million.”

Still in the letter, Trajano denies the accusations and says that they are “lies, false accusations and slander”, which “will not serve, under any circumstances, for the former controllers of Kabum to obtain any type of undue advantage, to the detriment of the company”.

“When they see the failure of each attempt to destabilize and slander those they consider contrary to their interests, they move on to another, never a cacophony without any echo. The truth has prevailed until now – and will impose itself once again”, adds Trajano.

It is worth remembering that Kabum was blindfolded Magazine Luiza in 2021. In July 2023, the brothers filed a request to open arbitration against the retailer, at the Brazil Canada Chamber of Commerce, alleging that alleged conflicts of interest had resulted in financial damages for both of them.