SAO PAULO, June 14 (Reuters) - A Brazilian court has cleared Banco Bradesco SA Chief Executive Officer Luiz Carlos Trabuco of trying to avoid a 3 billion real ($911 million) tax fine, triggering a sharp increase in shares of the nation’s No. 3 bank.
In a Wednesday securities filing, Bradesco said Brazil’s Federal Regional Court of the 1st Region acquitted Trabuco of charges he participated in a plan to avoid the fine that Brazil’s Tax Revenue Service had imposed on the bank. The court’s board decision to clear Trabuco was unanimous.
Court officials could not be reached for further details.
The accusations against Trabuco, one of Brazil’s most influential power brokers, came in the midst of a sweeping corruption scandal at state firms that has rattled Brazil’s political establishment and undermined President Michel Temer’s administration.
Preferred shares of the Osasco, Brazil-based lender added as much as 4.4 percent to 27.28 reais. The stock’s intraday gain, the biggest since mid-April, helped pare losses in the shares this month to 16 percent. ($1 = 3.2913 reais) (Reporting by Guillermo Parra-Bernal; Editing by Jeffrey Benkoe)