Court approves Petrobras's $2.95bn settlement in US class-action suit

Source: ICIS News

2018/06/25

HOUSTON (ICIS)--A US federal court approved a $2.95bn agreement that Petrobras reached earlier this year to settle a securities class-action lawsuit, the Brazilian state energy producer said on Monday.

The decision is subject to appeal, Petrobras said.

The company announced it had reached a settlement early in 2018.

The lawsuit against Petrobras was filed by US investors who bought the company's shares. The investors alleged that Petrobras misled them about events that would lead to the Lava Jato, or Car Wash, scandal, a massive pay-to-play bribery scheme.

Under the scheme, Petrobras awarded inflated contracts, the investors alleged in the lawsuit. The excess money went to individual executives and politicians.

Petrobras has portrayed itself as a victim in the scandal, which is why the company denied liability in the class-action lawsuit, it said.

The agreement does not constitute an admission of guilt or of any improper practices by Petrobras, the company said in a news release.

The lawsuit was litigated in US District Court, Southern District of New York.

The case number is 14-cv-9662.