26.Jun.2017

This Monday (June 19), our Board of Directors approved the signing of an agreement to end an individual action brought before the Federal Court of Pennsylvania, in the United States, by a group of affiliates of The Vanguard Group, Inc. ('Vanguard').

Vanguard is one of our largest shareholders, after the Federal Government and related entities.

We had already signed agreements to settle 19 other individual suits filed at the Federal Court of New York, United States, as announced on October 21, 2016, November 23, 2016, and on February 24, 2017.

Including the 19 individual suits with agreements previously entered into, a total of 27 individual lawsuits had been consolidated, for purposes of sentencing, in conjunction with a class action suit before the Federal Court of New York. The Vanguard lawsuit was the only individual lawsuit filed outside of New York.

To reflect the agreements entered into, as well as the ongoing negotiations with plaintiffs of other individual actions, the estimated total provisions amount to $445 million for the second quarter of 2017, of which the company had already accrued the amount of $372 million in the result for the year 2016.

I is not possible to make a reliable estimate of the outcome of the class action at the moment.

These agreements, the terms of which are confidential, are intended to eliminate uncertainties, burdens, and costs associated with the continuation of such disputes, and they do not constitute any acknowledgment of liability on our part. We will continue to vigorously defend ourselves in other ongoing lawsuits.

PETROBRAS - Petróleo Brasileiro SA published this content on 26 June 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 26 June 2017 15:24:07 UTC.

Original documenthttp://www.petrobras.com.br/en/news/we-have-approved-an-agreement-with-investors-to-settle-an-individual-action-in-the-us.htm

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