Petróleo Brasileiro S.A. ("Petrobras") is a state-owned Brazilian multinational corporation in the petroleum industry.
According to the law firm press release, the lawsuit alleges Petrobras issued materially false and misleading financial information to investors. Specifically, the suit alleges that Petrobras failed to disclose a high level of corruption at the company, including a multi-billion dollar money-laundering bribery scheme. In addition, Petrobras is alleged to have overstated its property, plant, and equipment line item on its balance sheet resulting from overstated amounts paid on contracts that were carried as assets on the balance sheet.
Following several arrests of senior level Petrobras management, and disclosure that Petrobras may potentially have to adjust its historical financial statements to recognize the overpricing of construction contracts, Petrobras’ share price fell $8.88 per share or approximately 46% to $10.50 per share on November 24, 2014, damaging investors.
On October 15, 2015, Lead Plaintiffs filed a Motion to Certify a Class. On February 2, 2016, the Court issued an Order granting Plaintiffs' Motion for Class Certification. On June 15, Defendants filed a Notice appealing the Class Certification Order. On October 15, 2019, the Court of Appeals issued an Order affirming in part and denying in part the Class Certification Order.
On January 3, 2018, Petrobras issued a press release which was picked up by various media outlets. According to the release, the Company has signed an agreement in principle to settle this lawsuit for the amount of $2.95 billion. The Court issued an Order granting preliminary approval for the Settlement on March 1. On June 25, the Court issued Orders approving attorneys' fees and expenses and granting final approval for the Settlement. On July 2, the Court granted final approval of the Settlement and entered Final Judgment. On July 31, an Objector filed a Notice of Appeal of the Final Judgment. On September 21, the Court issued an Order imposing sanctions on the attorney of the Objector. On October 12, the Objector withdrew his appeal. On November 2, the Objector filed a Notice appealing the sanctions imposed by the Order of September 21. The appeal was dismissed effective November 15 upon Appellant's failure to file a brief.
On September 24, 2019, the Court issued an Order granting authorization to distribute the net Settlement fund.