Class Action News

$3B Petrobras Deal Has Conflicts, Excessive Fees: Objector

May 11, 2018, 6:41 PM

A $3 billion deal to settle securities fraud claims against Brazil’s state-run oil company Petrobras shouldn’t be finalized, an objector told the federal court overseeing the deal May 10.

A conflict exists between class members who bought Petrobras securities domestically and those who bought them through foreign transactions, objector William Thomas Haynes said.

Foreign purchasers can’t recover under U.S. law, so their inclusion in the settlement class unfairly dilutes the recovery of U.S. purchasers, he said.

The objection and any subsequent appeal could delay payouts to class members for years.

‘Gobsmacking’ Fee Request

Haynes also challenges class counsel’s request of...

To read the full article log in or if you would like to request a demo visit bloombergindustry.com