Petrobras to pay $3 billion to settle class action suit in U.S.

Brazil’s state-owned oil company Petrobras has agreed to settle the securities class action lawsuit filed in the United States District Court for the Southern District of New York (SDNY).

Petrobras said on Wednesday that it signed an agreement in principle aimed at resolving all pending and prospective claims by buyers of Petrobras securities in the United States and by buyers of Petrobras securities that are listed for trading in the United States.

As a reminder, the investors sued the company after authorities in Brazil accused former executives of accepting more than $2 billion in bribes. The bribery scandal was uncovered following an investigation named Operation Lava Jato (Car Wash).

Petrobras agreed to pay $2.95 billion to resolve claims in two installments of $983 million and the last installment of $984 million.

The first installment will be paid within ten days of preliminary approval of the settlement by the court. The second installment will be paid within ten days of final approval of the settlement while the final installment will be paid either six months after final approval or on January 15, 2019, whichever comes later. The total settlement amount will be recognized in the fourth quarter of 2017.

Petrobras admitted no wrongdoing or misconduct and denied any liability claiming that the company was a victim of the acts uncovered by Operation Lava Jato.

“As a victim of the scheme, Petrobras has already recovered R$1.475 billion in restitution in Brazil and will continue to pursue all available legal remedies from culpable companies and individuals,” the company said.

The agreement will now be submitted to the district court in the SDNY for review. If preliminary approval is granted, the court will consider any objections and hold a hearing on the fairness of the proposed settlement before deciding whether to grant final approval.

According to Reuters, the settlement came only days after the Brazilian securities regulator CVM accused eight former Petrobras executives, including former CEOs Maria das Graças Foster and José Sérgio Gabrielli, of corruption.

Share this article

Follow Offshore Energy Today

Events>

<< Apr 2018 >>
MTWTFSS
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 1 2 3 4 5 6

9th SCADA World Summit 2018

The 4-day conference event’s key highlights will include case studies from leading energy & utilities companies, interactive discussions…

read more >

AIPN’s 2018 International Petroleum Summit (IPS)

The event features two full days of conference sessions, four pre-conference workshop offerings, a highly-rated structured Speed Networking…

read more >

Mozambique Mining, Oil & Gas and Energy Conference and Exhibition (MMEC 2018)

MMEC 2018 will continue to showcase and explore developments in our country’s thriving Oil & Gas, Mining and Energy sectors and to also focus…

read more >

The Offshore Technology Conference (OTC) 2018

The Offshore Technology Conference (OTC) is where energy professionals meet to exchange ideas and opinions to advance scientific…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply