Petrobras Underwriters Secure Favorable Settlement

A worldwide syndicate of underwriters of note offerings by Petróleo Brasileiro S.A. (Petrobras) has secured a favorable settlement of a putative class action brought by the purchasers of Petrobras’ 2013 and 2014 U.S. dollar-denominated bond offerings. The settlement included no payment by the underwriters, who were represented by Skadden. The plaintiffs’ claims related to alleged misrepresentations in Petrobras’ financial and other public statements due to an ongoing corruption and bribery scheme at the company. Prior to the settlement, the defendants had secured the dismissal of a portion of the plaintiffs’ claims and successfully vacated, at the U.S. Court of Appeals for the Second Circuit, the district court’s certification of a class of investors. The settlement was negotiated while a writ of certiorari to the U.S. Supreme Court was pending.