Petrobras to pay $2.95 bn to settle US class action suit

NEW YORK: Brazil’s state-controlled oil company, Petroleo Brasileiro SA, said on Wednesday that it has agreed to pay $2.95 billion to settle a US class action brought by investors seeking to recoup money they claim to have lost as a result of a corruption scandal.
Petrobras, as the company is known, did not admit wrongdoing under the deal, which is one of the largest securities class action settlements in the United States. US District Judge Jed Rakoff in Manhattan must approve the settlement.
Investors sued Petrobras after prosecutors in Brazil accused former executives at the company of accepting more than $2 billion in bribes over a decade, mainly from construction and engineering companies.
Petrobras claimed it was itself a victim, but its market value plunged as the so-called Lava Jato or “car wash” scandal deepened. Petrobras said on Wednesday that it hoped the settlement would resolve all investor claims in the United States over the scandal.
The deal does not include investors who bought non-US-based Petrobras securities outside the United States, according to the company. — Reuters