Petrobras to Pay $3 Billion to End U.S. Lawsuits Over Graft

Settlement ends three years of litigation over bribery scheme
Payout less than half the amount expected by Morgan Stanley

Bloomberg’s Paula Sambo says a class-action settlement paid by Petrobras was less then expected.(Source: Bloomberg)

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By Sabrina Valle

January 3, 2018 at 11:52 AM UTC

Updated on

January 3, 2018 at 4:43 PM UTC

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Brazil’s state-run energy explorer Petrobras agreed to pay $2.95 billion to compensate U.S. investors who lost money when a massive corruption scandal eroded the oil giant’s market value.

The settlement will end a three-year legal battle with holders of Petrobras’s American depositary receipts and bonds who filed lawsuits claiming large losses after Brazilian prosecutors exposed a wide-ranging money-laundering and kickback scheme involving the company in 2014.