December 13, 2018 / 11:04 AM / 10 months ago

U.S. court approves settlement between Brazil's Eletrobras, shareholders

FILE PHOTO: A view of the headquarters of Brazil's power company Eletrobras in downtown Rio de Janeiro August 20, 2014. REUTERS/Pilar Olivares/File Photo

RIO DE JANEIRO (Reuters) - A U.S. court has approved a class action settlement between Centrais Eletricas Brasileiras SA (ELET6.SA) (Eletrobras) and some of its shareholders, the Brazilian state electricity company said on Thursday.

Under the accord, Eletrobras will pay $14.75 million to holders of its American Depositary Shares (ADRs) as compensation for losses related to the company’s involvement in a sprawling corruption scheme.

The settlement had been presented to the U.S. District Court for the Southern District of New York in June and received preliminary approval in August.

In May, when Eletrobras reached a memorandum of understanding with ADR holders, the company said it was not admitting any wrongdoing as part of the settlement.

In January, Brazilian state-run oil firm Petroleo Brasileiro SA (PETR4.SA) agreed to pay $2.95 billion to settle a similar U.S. class action lawsuit, in what was said to be the biggest such payout ever in the United States by a foreign entity.

Reporting by Gram Slattery; editing by Jason Neely

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