By Jeffrey T. Lewis


SÃO PAULO--Grupo Pão de Açúcar's shares fell 5.3% on Thursday after the Brazilian food retailer, also known as Companhia Brasileira de Distribuição or GPA, received an unfavorable ruling from Brazil's supreme court.

The company's shares reached 16.50 reais, the equivalent of $3.18, and are down 5.2% from the end of last year through Wednesday's close. Brazil's benchmark Ibovespa stocks index was down 0.2% in mid-morning trading.

GPA said Wednesday after the close that a ruling by the Brazil's Federal Supreme Court could result in the company facing a bill for back taxes of about 290 million reais.

GPA said it is still assessing the impact of the court's decision and the company's legal strategy going forward. The supermarket operator is involved in multiple legal processes that will be affected by the court's decision, and the cases should be resolved over the next few years, GPA said.


Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com


(END) Dow Jones Newswires

02-09-23 0941ET