Brazil's Petrobras Settles More Individual Shareholder Suits -- Update

By Paul Kiernan 

RIO DE JANEIRO -- Brazilian state-run oil company Petróleo 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 [e-mail]

(END) Dow Jones Newswires

November 23, 2016 18:33 ET (23:33 GMT)

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