Brazilian flats steelmaker Usiminas said on Friday it has filed a civil liability lawsuit against its former CEO, Romel Erwin de Souza.
Sergio Leite, Usiminas’ current CEO, replaced Nippon Steelsupported CEO Romel de Souza in March this year, who in turn replaced Leite in October 2016.
Souza reportedly signed a memorandum of understanding (MoU) with Usiminas’ mining arm, MUSA, in which it sought a loss compensation deal.
The document was signed in May 2016, and raised discussion among board members at a board meeting this year, since some of them argued the signing of the document was "irregular."
The decision to file a civil liability lawsuit against Souza was approved by the Usiminas board in a meeting in April this year.