Judge Annuls R$10.3 Billion J&F Leniency Penalty, Orders Narrower Recalculation

Overview

• The 10th Federal Criminal Court in Brasília voided the penalty clause and directed that a new amount be calculated.
• The ruling limits the base to contracts, revenues and activities under Brazilian jurisdiction directly tied to the offenses.
• Amounts paid by J&F and affiliates to the U.S. Department of Justice for the same facts must be deducted from the new figure.
• The decision also requires the calculation to reflect J&F’s effective ownership stake in affiliated companies covered by the agreement.
• J&F says the recalculation corrects an injustice and estimates roughly R$1 billion, while its request proposes about R$1.28 billion, and the original payment was already suspended by STF minister Dias Toffoli in 2023.