Rio de Janeiro, October 21, 2016 – Petróleo Brasileiro S.A. – Petrobras announces that its Board of Directors approved, in a meeting held today, agreements to settle four individual securities actions brought before the US District Court for the Southern District of New York by PIMCO Total Return Fund, et al., Dodge & Cox International Stock Fund, et al., Janus Overseas Fund, et al., and Al Shams Investments, et al.
Petrobras will recognize a provision in its third quarter financial statements as a result of the settlements reached and the status of ongoing negotiations with certain other individual plaintiffs. The Company currently expects the amount of the provision to be US$ 353 million.
These actions are consolidated with 23 other similar actions and the class action filed against the Company (and others) before the US District Court for the Southern District of New York.
At this time, it is not possible for the Company to make a reliable estimate with respect to the potential outcome of the class action.
PIMCO is one of the largest holders of bonds of the Petrobras group, and Dodge & Cox is one of the largest shareholders, after the Brazilian Federal Government and affiliated entities.
Petrobras denies all allegations of wrongdoing and continues to defend itself vigorously in all pending actions. The settlements, the terms of which are confidential, are aimed at eliminating the uncertainties, burdens and expense of ongoing litigation.
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