Brazil's CVM Clears T4F Board in Lollapalooza 2023 Labor Case

Overview

• The CVM’s collegiate voted unanimously on November 11 to acquit six directors — Carla Gama Alves, Fernando Luiz Alterio, Galeno Augusto Jung, Luis Alejandro Soberón Kuri, Marcelo P. Hallack and Marcos S. Hatushikano — in the sanctioning case.
• Relator João Accioly cited adequate governance controls and contractor vetting in finding the board fulfilled its diligence duties, with acting chair Otto Lobo and director Marina Copola concurring.
• The proceeding stemmed from MTE auditors finding five Yellow Stripe subcontracted workers in conditions described as analogous to slavery during the Lollapalooza 2023 build-out.
• CVM technical staff had accused the board of breaching T4F’s code of conduct and failing to address risks flagged by complaints from the 2018 and 2019 editions.
• First-instance labor-court decisions had already rejected the gravest coercion claims, finding only lesser infractions such as inadequate meal and sleeping facilities, and in June the CVM rejected a R$1.5 million settlement proposal.