Rio de Janeiro, June 19, 2017 – Petróleo Brasileiro S.A. – Petrobras announces that its Board of Directors approved, in a meeting held today, an agreement to settle an individual securities action brought before the U.S. federal District Court for the Eastern District of Pennsylvania by a number of funds affiliated with The Vanguard Group, Inc. (“Vanguard”).
Vanguard is one of the Company’s largest shareholders, after the Brazilian Federal Government and affiliated entities.
Petrobras has previously entered into settlements to end 19 individual securities actions brought in the U.S. federal District Court for the Southern District of New York, as disclosed on October 21, 2016, November 23, 2016 and February 24, 2017.
Including the 19 lawsuits previously settled, 27 total individual actions were consolidated for purposes of judgment jointly with a class action filed against the Company (and others) in the Southern District of New York. Vanguard’s lawsuit was the only related individual action filed outside of New York.
As a result of the agreements reached and the stage of negotiations in progress with other individual action plaintiffs, the total value of the estimated provisions amounts to US$ 445 million for the second quarter of 2017, of which US$ 372 million had already been provisioned in the 2016 financial statements.
At the moment, it is not possible for Petrobras to make a reliable estimate of the outcome of the class action.
These settlements, the terms of which are confidential, have the purpose of eliminating uncertainties, burdens and costs associated with the continuity of such disputes and do not constitute any acknowledgment of responsibility on the part of Petrobras, which will continue to firmly defend itself in other ongoing actions.