Brazil's Petrobras Settles More Individual Shareholder Lawsuits
November 23 2016 - 8:20PM
Dow Jones News
RIO DE JANEIRO—Brazilian state-run oil company Petró leo
Brasileiro SA said Wednesday it has agreed to settle 11 investor
lawsuits related to corruption, the latest step toward resolving a
major source of uncertainty and potential liability.
The lawsuits had been filed in New York by shareholders seeking
to recoup losses they say were triggered by revelations in 2014 of
a vast bribery scheme surrounding Petrobras. They had been
consolidated into a class-action suit claiming tens of billions of
dollars in losses.
The agreements announced Wednesday include a variety of
institutional investors such as Aberdeen Emerging Markets Fund,
State of Alaska Department of Revenue, Ohio Public Employees
Retirement System and Abbey Life Assurance Company Ltd. These come
on top of settlements with four other groups of shareholders,
including bond giant Pacific Investment Management Co. LLC, that
Petrobras announced in October.
Petrobras didn't disclose the amount involved in the settlement
but said it is covered by a $364 million provision marked down in
its third-quarter earnings.
The company added that the deals "do not constitute any
recognition of responsibility by Petrobras, which will continue
defending itself firmly in the remaining lawsuits under way."
An additional 12 individual lawsuits consolidated into the class
action remain open, including one by the Bill and Melinda Gates
Foundation Trust.
"At the moment, it is not possible for Petrobras to make a
reliable estimate as to the outcome of the class action," the
company said.
Write to Paul Kiernan at paul.kiernan@wsj.com
(END) Dow Jones Newswires
November 23, 2016 20:05 ET (01:05 GMT)
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