April 9, 2018
USD $3 Billion US settlement: In January 2018, Petrobras announced that in connection with the losses investors suffered from the Lava Jato bribery scandal, it had agreed to a USD $3 Billion settlement with investors who purchased Petrobras Common or Preferred American Depository Shares (ADS) and certain bonds in the U.S. The court has preliminarily approved the proposed settlement. The deadline to submit a claim in the U.S. case is set for June 9, 2018.
International Litigation and Settlement Initiative in the Netherlands: Separately, litigation efforts conducted by Stichting Petrobras Compensation Foundation against Petrobras continue in the Netherlands on behalf of investors who also suffered billions of dollars in losses in Petrobras common shares (PETR3) and Petrobras preferred shares (PETR4), which are listed on BM&F Bovespa, as well as Petrobras bonds that were sold outside of the U.S. The next hearing date for that litigation is on June 28, 2018 in District Court in Rotterdam.
Investor Claims Filing and Participation: The landscape surrounding the global litigations against Petrobras and related settlements and loss recovery opportunities for investors is more complex than usual due to a multitude of factors, including the complexity of Petrobras’ capital structure, with its equity being listed on exchanges in the US, Brazil, and through global linked market systems, and the numerous securities that are eligible for recovery, as well as the multiple currency denominations of Petrobras bonds that were issued and offered both in the US and internationally. The proposed US settlement has a number of qualifying conditions and more than 20 different equity related price loss calculations. Identifying and asserting the proper securities in each of the proposed or pending settlements will be critical for investors to ensure they receive all of the monies to which they are entitled.
Battea is the leading global expert in all stages of class actions and class settlements in connection with securities, foreign exchange, derivatives, and antitrust litigations and settlements, acting on behalf of more than 700 institutional investors worldwide, including the world’s biggest banks, hedge funds, and buy-side investors. Battea has provided litigation research and analyzed massive streams of Petrobras trading transaction data on behalf of its global client base and is uniquely positioned to assist interested institutional investors who have transacted in both US and non-US based Petrobras securities. Underscoring the Company’s specialized expertise in the Petrobras matter, it has been retained to process and analyze investor transaction eligibility by the international coalition undertaking the international litigation efforts in the Netherlands.
Who is Eligible to Recover in the US Settlement:
The US Settlement covers persons or entities that purchased or otherwise acquired equity or debt securities of Petrobras (or Petrobras International Finance Company S.A. and/or Petrobras Global Finance B.V., its wholly owned financing subsidiaries) on the NYSE or that cleared or settled through DTC’s book-entry system, or pursuant to certain other covered transactions between January 22, 2010 and July 28, 2015; and/or purchased or otherwise acquired debt securities issued by Petrobras or its financing subsidiaries directly in, pursuant to and/or traceable to a May 13, 2013 public offering registered in the U.S. and/or a March 10, 2014 public offering registered in the U.S. before August 11, 2014, in the case of the May 13, 2013 public offering, or before May 15, 2015, in the case of the March 10, 2014 public offering.
Who is Eligible to Participate in the International Recovery Action in the Netherlands:
The pending international recovery action in the Netherlands covers all persons who purchased or acquired before July 28, 2015 any Petrobras security not covered by the US Settlement, which includes both Petrobras common and preferred shares traded on Bovespa or through linked market systems outside of the US, as well as all bonds offered outside of the US. Petrobras Global Finance B.V., which promoted Petrobras to the international capital markets, is not headquartered in Brazil, but rather in Rotterdam, the Netherlands, where other Petrobras subsidiaries involved in the Lava Jato bribery scandal are domiciled as well. Further in the EU, Petrobras became subject to the CNMV, the Spanish Financial Market Regulator, when the Company opened access to its shares listed on Bovespa through a linked market system arrangement with Bolsa de Madrid.
Battea can assist investors with determining and preserving eligibility in both the U.S. case and the international Netherlands case. For more information, contact Battea today at [email protected] or call +1 (203) 987-4949.
About Battea – Class Action Services, LLC: Battea – Class Action Services, via its comprehensive secure datacenter hosted technology platforms and The Claims Engine®, automates class action settlement award recovery across all asset classes for nearly 20 years and in excess of 700 institutional investors, including hedge funds, asset management firms, sovereign and pension funds, endowments and family offices. Battea is trusted as a global leader, and consulted as experts, in all stages of asserting and processing settlement claims in connection with antitrust and securities litigation. Battea maintains corporate headquarters in Stamford, CT and San Francisco, CA and has support agents in several international locations including London, Madrid, Scandinavia, Luxembourg and others.
About Battea Global Litigation Research, Inc.: Battea Global Litigation Research, Inc., a subsidiary of Battea Class Action Services, LLC, is responsible tracking of settlements and litigation initiatives globally and provide in-depth analysis, expert event and damages studies for clients and shareholder associations and foundations. Comprised of an international team of experts in the legal and financial markets, Battea Global Litigation Research maintains offices in both Stamford, CT and Copenhagen, Denmark.