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Petrobras Agrees To Pay $2.95 Bln To Settle US Class Action

Brazil's state-run oil company Petróleo Brasileiro S.A. (PZE), commonly known as Petrobras, said that it has agreed to pay US$2.95 billion to settle a class action suit in the United States.

The case was brought by investors who said their holdings were damaged by a corruption scandal facing the firm.

The agreement, which is subject to approval by the court, is intended to resolve all pending and prospective claims by purchasers of Petrobras securities in the United States and by purchasers of Petrobras securities that are listed for trading in the United States, Petrobras said.

Under the proposed settlement, Petrobras has agreed to pay US$2.95 billion to resolve claims in two installments of US$983 million and a last installment of US$984 million. The first installment will be paid within 10 days of preliminary approval of the settlement by the court. The second installment will be paid within 10 days of final approval of the settlement. The third installment will be paid by the later of (i) six months after final approval, or (ii) January 15, 2019. The total settlement amount will be recognized in the fourth quarter of 2017.

Petrobras noted that the agreement does not constitute any admission of wrongdoing or misconduct by Petrobras. In the agreement, Petrobras expressly denies liability.

As a result of the agreement, the parties will ask the United States Supreme Court to defer consideration of Petrobras's petition for a writ of certiorari, which was scheduled for January 5, 2018, pending final approval of the proposed settlement.

by RTT Staff Writer

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