In a stunning capitulation, Petrobras settled with U.S. investors for nearly $3bn in a class-action lawsuit as follow-on litigation to the long-standing corruption allegations against the company. The litigation involved one of the largest securities class actions pending in the United States in which Petrobras was accused of concealing a sprawling, decades-long kickback scheme from investors. It is the fifth largest securities class-action settlement of all time. Kevin LaCroix, an attorney who advises companies on directors’ and officers’ liability insurance, noted that “While there have been larger settlements and there have been comparable settlements, the Petrobras settlement is unique in one respect, in that it is the largest settlement of a securities lawsuit filed as a follow-on to bribery or corruption allegations.”
