LONDON: Petroleo Brasileiro has agreed to pay $2.95 billion to settle a US class action brought by investors who claim they lost money in a corruption scandal.
Brazil’s state-controlled oil company, Petrobras (as it is known) has claimed it was itself a victim, while expressly denying any wrongdoing under the terms of the deal. United States District Judge Jed Rakoff must approve the settlement.
But, the company’s market value has plunged as the so-called Lava Jato or “car wash” corruption scandal has deepened. The company said the settlement will be paid in three roughly equal installments and will affect fourth quarter results.
Investors sued Petrobras after prosecutors in Brazil accused former executives at the company of accepting more than $2 billion in bribes over the course of ten years, mainly from construction and engineering companies.
Petrobras said that it hoped the settlement would resolve all investor claims in the United States over the scandal.
The deal does not include investors who bought non-US-based Petrobras securities outside the United States, according to the company. The deal comes just days after Brazil’s securities regulator CVM formally accused eight former Petrobras executives of corruption.
According to a legal filing by the regulator on Friday, the accusations relate to possible irregularities in the contracting process for three drill ships.
Former Petrobras chief executives Maria das Gracas Foster and Jose Sergio Gabrielle are among the accused in CVM’s filing.
The largest securities fraud settlements in US history include $7.2 billion stemming from the collapse of Enron, $6.2 billion over an accounting scandal at WorldCom and $3.2 billion over an accounting scandal at Tyco International, according to Stanford Law School’s Securities Class Action Clearinghouse.
Petrobras pay $2.95bn to settle US class action on corruption
Petrobras pay $2.95bn to settle US class action on corruption
Silver crosses $77 mark while gold, platinum stretch record highs
- Spot silver touched an all-time high of $77.40 earlier today, marking a 167% year-to-date surge driven by supply deficits
- Spot platinum rose 9.8% to $2,437.72 per ounce, while palladium surged 14 percent to $1,927.81, its highest level in over 3 years
Silver breached the $77 mark for the first time on Friday, while gold and platinum hit record highs, buoyed by expectations of US Federal Reserve rate cuts and geopolitical tensions that fueled safe-haven demand.
Spot silver jumped 7.5% to $77.30 per ounce, as of 1:53 p.m. ET (1853 GMT), after touching an all-time high of $77.40 earlier today, marking a 167% year-to-date surge driven by supply deficits, its designation as a US critical mineral, and strong investment inflows.
Spot gold was up 1.2% at $4,531.41 per ounce, after hitting a record $4,549.71 earlier. US gold futures for February delivery settled 1.1% higher at $4,552.70.
“Expectations for further Fed easing in 2026, a weak dollar and heightened geopolitical tensions are driving volatility in thin markets. While there is some risk of profit-taking before the year-end, the trend remains strong,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Markets are anticipating two rate cuts in 2026, with the first likely around mid-year amid speculation that US President Donald Trump could name a dovish Fed chair, reinforcing expectations for a more accommodative monetary stance.
The US dollar index was on track for a weekly decline, enhancing the appeal of dollar-priced gold for overseas buyers.
On the geopolitical front, the US carried out airstrikes against Daesh militants in northwest Nigeria, Trump said on Thursday.
“$80 in silver is within reach by year-end. For gold, the next objective is $4,686.61, with $5,000 likely in the first half of next year,” Grant added.
Gold remains poised for its strongest annual gain since 1979, underpinned by Fed policy easing, central bank purchases, ETF inflows, and ongoing de-dollarization trends.
On the physical demand side, gold discounts in India widened to their highest in more than six months this week as a relentless price rally curbed retail buying, while discounts in China narrowed sharply from last week’s five-year highs.
Elsewhere, spot platinum rose 9.8% to $2,437.72 per ounce, having earlier hit a record high of $2,454.12 while palladium surged 14% to $1,927.81, its highest level in more than three years.
All precious metals logged weekly gains, with platinum recording its strongest weekly rise on record.
