Brazilian oil company to pay U.S. investors over curruption case

HOUSTON, Jan. 3 (Xinhua) -- Brazilian state-run oil company Petroleo Brasileiro SA signed Wednesday to pay 2.95 billion U.S. dollars to end a class-action lawsuit over a massive corruption scandal that has damaged its market value.

According to local news report, the deal will end a three-year legal battle with investors in the company'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. It is considered one of the highest-value settlements in history.

The settlement, which needs to be approved by a U.S. judge, will reflect on the company's fourth-quarter 2017 results and will be paid in three installments, the latest in early 2019, the Rio de Janeiro-based oil producer said in a statement on Wednesday.

The Brazilian company expects to resolve all pending and prospective class-action lawsuits in the U.S. The settlement does not include compensation for investors who bought their securities in Brazil. The company says it will keep disputing other claims in court.

Petroleo Brasileiro SA was at the heart of a Brazilian corruption probe that also spread to other industries and countries, implicating construction companies, banks, shipyards and leading politicians over the past years. The company says it was a victim of fraud orchestrated by a handful of individuals. Enditem