Petrobras announces agreement to settle class action in US
In a note released Thursday (Mar. 1), Brazil's government-controlled oil giant Petrobras announced it was granted preliminary approval by the New York Federal Court for a deal to settle the class action filed by investors against the firm. The case had stemmed from allegations made as part of Operation Car Wash.
The agreement 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 or that cleared or settled through the Depository Trust Company,” the note reads.
Hearing
The members of the class action are reported soon to be notified of the terms of the agreement, and a judge will consider objections, if any is made, so that a hearing may be held on June 1 to ascertain whether the deal is fair and reasonable. Only then can the judge make a final decision on the matter.
In the note issued today, Petrobras remarks that, as announced on January 3 this year, “the agreement does not constitute any admission of wrongdoing or misconduct by Petrobras.”
The conciliation stops the case from advancing further into the US judiciary branch. Petrobras had requested the US Supreme Court to nullify some of the aspects of the decision that had been previously made concerning the shareholders. However, the talks led the Federal Court to help investors and the company to reach an agreement on the value and method of compensation.
Class action
The class action targeting Petrobras was initiated two years ago, in February 2016. In January this year, District Judge Jed Rakoff, of the US Court of Appeals for the Second Circuit, accepted the appeals lodged by Petrobras. Next, the terms of understanding were set forth, which led to the preliminary decision made public yesterday. The agreement will settle the case.
In the agreement, the state-run firm retains “its status as a victim of the acts uncovered by Operation Car Wash, as recognized by Brazilian authorities including the Brazilian Supreme Court.”
Petrobras also reports that it “has already recovered [US$454,5 million] in restitution in Brazil and will continue to pursue all available legal remedies from culpable companies and individuals.”
*Leandra Felipe, a correspondent from the US, contributed to this article.
Translated by Fabrício Ferreira
Fonte: Petrobras announces agreement to settle class action in US
