In one of the largest class action settlements of all-time, Petroeo Brasileiro S.A. (Petrobras) has agreed to settle its bribery and corruption-related securities class action lawsuit pending against the company. Following the public revelation of Petrobras’ activities, the company’s share price in Brazil declined by over 80% and the price of its ADRs on the NYSE declined by 78%.
The $3 billion settlement resolved claims of Petrobras investors who purchased the company’s securities in the U.S. There is still currently a separate case (“opt-in” litigation) of those shareholders and investors who previously purchased Petrobras securities directly in Brazil. The settlement between plaintiffs and Petrobras was announced in early January and is now the fifth largest class-action settlement of all-time (behind only Enron, WorldCom, Cendant, and Tyco, surpassing the current fifth largest case, AOL Time Warner), according to ISS Securities Class Action Services (SCAS) data.