Petrobras approves settlement with investors to end individual securities action
in the United States
Rio de Janeiro, June 19, 2017 – Petróleo Brasileiro S.A. – Petrobras announces
that its Board of Directors approved, in a meeting held today, an agreement to
settle an individual securities action brought before the U.S. federal District
Court for the Eastern District of Pennsylvania by a number of funds affiliated
with The Vanguard Group, Inc. (“Vanguard”).
Vanguard is one of the Company’s largest shareholders, after the Brazilian
Federal Government and affiliated entities.
Petrobras has previously entered into settlements to end 19 individual
securities actions brought in the U.S. federal District Court for the Southern
District of New York, as disclosed on October 21, 2016, November 23, 2016 and
February 24, 2017.
Including the 19 lawsuits previously settled, 27 total individual actions were
consolidated for purposes of judgment jointly with a class action filed against
the Company (and others) in the Southern District of New York. Vanguard’s
lawsuit was the only related individual action filed outside of New York.
As a result of the agreements reached and the stage of negotiations in progress
with other individual action plaintiffs, the total value of the estimated
provisions amounts to US$ 445 million for the second quarter of 2017, of which
US$ 372 million had already been provisioned in the 2016 financial statements.
At the moment, it is not possible for Petrobras to make a reliable estimate of
the outcome of the class action.
These settlements, the terms of which are confidential, have the purpose of
eliminating uncertainties, burdens and costs associated with the continuity of
such disputes and do not constitute any acknowledgment of responsibility on the
part of Petrobras, which will continue to firmly defend itself in other ongoing
actions.
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www.petrobras.com.br/ir
Contacts:
PETRÓLEO BRASILEIRO S.A. – PETROBRAS | Investor Relations Department I e-mail:
petroinvest@petrobras.com.br
Av. República do Chile, 65 – 10th floor, 1002 – B – 20031-912 – Rio de Janeiro,
RJ | Phone: 55 (21) 3224-1510 / 3224-9947
FORWARD-LOOKING STATEMENTS
This release includes forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, that are subject to risks and uncertainties.
The forward-looking statements, which address the Company’s expected business
and financial performance, among other matters, contain words such as “believe,”
“expect,” “estimate,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,”
“will,” “may,” “should,” “could,” “would,” “likely,” and similar expressions.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date on which they are made. There is no
assurance that the expected events, trends or results will actually occur. We
undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information or future events or for any
other reason.
The Company’s actual results could differ materially from those expressed or
forecast in any forward-looking statements as a result of a variety of
assumptions and factors. These factors include, but are not limited to, the
following: (i) failure to comply with laws or regulations, including fraudulent
activity, corruption, and bribery; (ii) the outcome of ongoing corruption
investigations and any new facts or information that may arise in relation to
the “Lava Jato Operation”; (iii) the effectiveness of the Company’s risk
management policies and procedures, including operational risk; and (iv)
litigation, such as class actions or proceedings brought by governmental and
regulatory agencies. A description of other factors can be found in the
Company’s Annual Report on Form 20-F for the year ended December 31, 2016, and
the Company’s other filings with the U.S. Securities and Exchange Commission.