Brazil’s Petrobras to pay $2.95bn in US class-action corruption lawsuit
Brazil’s state-run oil producer Petrobras agreed to pay $2.95bn to settle US class-action lawsuits over a massive corruption scandal that has damaged its market value. The deal will end a three-year legal battle with investors in Petrobras’s American depositary receipts and bonds who claim they incurred large losses after Brazilian prosecutors exposed a wide-ranging money-laundering and kickback scheme involving the company in 2014. The settlement, which needs to be approved by a US judge, will be reflected in the company’s fourth-quarter 2017 results and will be paid in three installments, the latest in early 2019, the Rio de Janeiro-based producer said in a statement on Wednesday. Petróleo Brasileiro, as the oil producer is formally known, was at the heart of a Brazilian corruption probe dubbed Carwash that also spread to other industries and countries, implicating construction companies, banks, shipyards and leading politicians over the past couple of years. The company says it w...
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