Petrobras request to temporarily suspend class action suit granted by US court

Petrobras request to temporarily suspend class action suit granted by US court

A class action suit against Brazil’s troubled state oil firm Petrobras has been halted in US court, according to Reuters citing a securities filing made on Monday.

The US Court of Appeals for the Second Circuit based in New York City had on Friday granted Petrobras’ motion to stay the case.

This applies until such time as the US Supreme Court renders a decision on a separate request from Petrobras about the proceedings.

The class action suit was brought on behalf of investors who claim US federal securities laws were broken by the concealment of the multi-year, multibillion-dollar bribery scheme that has been roiling Petrobras and Brazil’s body politic.

Monday’s securities filing also revealed that Petrobras, holder of huge offshore drilling interests, has repaid $1.28bn in debts to banks J.P. Morgan, HSBC and Intesa Sanpaolo.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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