U.S. court approves settlement between Brazil's Eletrobras, shareholders
Reuters
Published Dec 13, 2018 05:59AM ET
U.S. court approves settlement between Brazil's Eletrobras, shareholders
RIO DE JANEIRO (Reuters) - A U.S. court has approved a class action settlement between Centrais Eletricas Brasileiras SA (SA:ELET6) (Eletrobras) and some of its shareholders, the Brazilian state electricity company said on Thursday.
Under the accord, Eletrobras will pay $14.75 million to holders of its American Depositary Shares (ADRs) as compensation for losses related to the company's involvement in a sprawling corruption scheme.
The settlement had been presented to the U.S. District Court for the Southern (NYSE:SO) District of New York in June and received preliminary approval in August.
In May, when Eletrobras reached a memorandum of understanding with ADR holders, the company said it was not admitting any wrongdoing as part of the settlement.
In January, Brazilian state-run oil firm Petroleo Brasileiro SA (SA:PETR4) agreed to pay $2.95 billion to settle a similar U.S. class action lawsuit, in what was said to be the biggest such payout ever in the United States by a foreign entity.
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Written By: Reuters
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