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The Provincial Court Confirms Dismissal for Fraud, Disloyal Administration, and Business Corruption

I. Case Overview

EDBA has represented the interests of several salespeople from a company who were accused, along with other individuals, of participating in crimes of fraud, disloyal administration, and corruption in business, harming their employer and benefiting a competitor.

EDBA representó los intereses de varios comerciales de una empresa a quienes se acusaba

II. Findings of the Provincial Court

The Provincial Court, examining the complaint against EDBA’s clients, found claims that several employees had planned to divert business to a competitor at a price far below market value. However, after the conclusion of the preliminary investigation, the court stated, “the truth is that it has not been proven that the services were provided at inappropriate prices.” This conclusion was supported by a judicial expert’s report, which was deemed to be objective and independent, offering technical answers to the complex economic issues raised in the case.

Hallazgos de la Audiencia Provincial

III. Strategic Business Practices Justified

During the investigation, it was established that “the operations analyzed were not illogical according to the practice of the sector or the business strategy of the complainant” and, in fact, “were carried out to its benefit,” concludes the Provincial Court. It was proven that the company resorted to industry businesses “to avoid generating further losses to the society and at least recover the acquisition cost,” thus minimizing the losses that non-placement of the product could entail. The Provincial Court noted that this was precisely one of the commercial team’s objectives, “to reduce at all costs the percentage of unsold inventory, as set by the company’s top management.”

IV. Unlikelihood of Unauthorized Sales

Lastly, the Provincial Court mentioned it is “implausible” that such sales were made “without the financial direction or the CEO noticing,” thus confirming the dismissal and filing of proceedings previously decreed by the Instruction Court in favor of EDBA’s clients.

This case underscores the importance of thorough and objective evaluation in legal proceedings, particularly when complex economic transactions are in question, and reaffirms the principle of presumption of innocence until proven guilty.

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