A federal judge in Miami has refused to dismiss a lawsuit filed by a Brazilian power plant operator claiming generators made by Caterpillar Inc. exploded at a cost of $50 million.

Caterpillar claimed Companhia Energetica Potiguar S.A.'s lawsuit should be dismissed on forum non conveniens grounds since the generators in question—as well as many of the witnesses—are located in Brazil.

U.S. District Judge Jose E. Martinez sided with the plaintiffs July 22, ruling that evidence of generator designs is located in the United States and 119 U.S. employees have specific information about 144 sets of allegedly flawed generators bought by the utility company.