SAO PAULO, Sept 8 Forjas Taurus SA,
Latin America's largest gun maker, told Brazil's securities
regulator on Thursday it had not notified investors about an
alleged sale to a known Yemeni arms trafficker because the
company was not accused in the case.
Taurus confirmed on Monday a Reuters report that two former
executives had been charged over a deal in 2013 that allegedly
sent arms to Yemen's civil war, but the company said it was only
a concerned party in the case.
Securities regulator CVM asked Taurus on Monday why it had
not previously sent a "Material Fact" filing on the matter.
"At that point the company did not see the release of a
Material Fact as applicable, since the company was not a party
in the case, which was sealed by the courts and in the initial
stage against third parties," wrote Taurus.
Taurus shares fell more than 2 percent in early trading
before rebounding to a 2 percent gain on Thursday. The stock's 8
percent drop on Tuesday was its worst daily fall in 16 months.
(Reporting by Brad Haynes; Editing by Alan Crosby)