Petrobras settles 11 shareholder lawsuits in US

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Thursday, November 24, 2016

Brazil's Petrobras has reached out-of-court settlements for 11 individual lawsuits that sought damages for corruption, the state-run oil company said in a stock exchange filing.

Petrobras did not reveal the value of the deals, but said they were covered by a US$364mn provision in its third-quarter results statement.

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The Rio de Janeiro-based company had already secured similar agreements to avoid litigation with four other investors.

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More than half of the individual cases in a class action filed with the New York Federal Court of the United States have now been settled, according to Petrobras.

"These agreements, the terms of which are confidential, do not constitute any acknowledgment of liability on our part," the filing said.

"We will continue to firmly defend our other ongoing actions to eliminate uncertainties, burdens and costs associated with the continuation of these disputes."

Petrobras shareholders in the US launched the action in February, seeking billions of dollars in damages stemming from bribery and kickbacks.

Investors accused the company of making false statements that overstated the value of its stock and bonds.

Brazil's Lava Jato corruption probe has ensnared scores of former Petrobras directors, construction firm executives and politicians since being launched in March 2014.