Resulting Settlements and Remedial Measures
Brazilian oil and gas giant Petrobras has entered into a series of settlements in closing out corruption investigations and litigation. For a long period of time, corruption was endemic at the corporation (the DOJ estimates illegally generated funds for payments as at least $2 billion), and the bill is finally coming due.
When it comes to a poster-child for corrupt organizations, there is very little competition that can eclipse Petrobras, the Brazilian state-owned oil and gas company. Petrobras has long suffered under a stigma of corruption, and as outlined in its recent settlement actions, the title was well deserved.
Petrobras’ corruption was firmly coordinated and entrenched with Brazil’s political corruption. The pervasive nature of Brazil’s political and oil and gas corruption was inextricably intertwined.
In a series of coordinated settlements, Petrobras closed its investigation, enforcement and collateral litigation books to include:
- Petrobras entered into a non-prosecution agreement with the Justice Department under which it was ordered to pay a criminal penalty of $853.2 million. However, under the NPA, Petrobras will pay 10 percent or $85.3 million of the criminal penalty.
- Petrobras settled with the Securities and Exchange…
