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Telefonica Brasil, former exec head to court over ad contracts

Sep. 28, 2016 1:42 PM ETTelefônica Brasil S.A. (VIV) StockVIVBy: Jason Aycock, SA News Editor
  • A case between Telefonica Brasil (VIV -0.9%) and a former senior executive is headed to court for a hearing Thursday.
  • Former exec Cristina Duclos, who led image and communications at the Vivo wireless unit before leaving in June, is meeting with company representatives in the 33rd Labor Court of Sao Paulo in case they can reach an out-of-court settlement.
  • She says the company planted news that she worked with ad agencies to permit excessive price differences in ad contracts, a breach of internal guidelines. She's seeking a chance to prove her innocence, and to be reinstated in order to do that.
  • Her reinstatement "will lead the company to explain whether such an investigation" of her conduct existed, she says.
  • Vivo spends about 1B reais (about $309M) per year on marketing and advertising.

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