Petrobras recently settled cases with several firms among the dozens of plaintiffs that have opted out of the class action against the Brazilian oil giant, including funds run by Russell and Manning & Napier. Funds that have filed opt-out suits allege they suffered significant losses and have pursued claims of their own with the aim to recover more than they would had they remained with the class.
Michael Lange, counsel of securities litigation at Financial Recovery Technologies told Ignites that Petrobras put aside a “very significant” sum of money in the third quarter to cover settlements, but it’s unclear whether that money is for the existing settlements only or also meant to cover those in the future.
The individual plaintiffs that haven’t settled with Petrobras face risks related to the future twists and turns of the class action case and opt-out suits, according to Lange.
Click here to read more about the recent Petrobras settlements.