June 25, 2018 / 1:56 PM / 4 months ago

UPDATE 1-Brazil's Petrobras says deal approved to settle U.S. class action-filing

(Adds settlement terms, background)

SAO PAULO, June 25 (Reuters) - Brazil’s state-run oil company, Petroleo Brasileiro SA, said on Monday a New York federal court approved a deal to settle a U.S. corruption class action lawsuit.

Petrobras, as the company is known, agreed in January to pay $2.95 billion to end the U.S. lawsuit in what was said to be one of the biggest such payouts in the United States by a foreign entity.

The settlement terms were approved last Friday by the U.S. court, the company said in a securities filing.

The court approval may be appealed at a higher court, said Petrobras, adding the settlement does not constitute admission of any wrongdoing in connection with a corruption investigation in Brazil known as “Car Wash.”

The settlement is seen an important milestone for company as it emerges from the scandal, which has entangled two former Brazilian presidents and dozens of the country’s corporate executives.

The Car Wash investigation began in early 2014 and has led to an unprecedented fight against entrenched political corruption in Brazil.

The probe has uncovered billions of dollars in bribes paid by major construction companies to politicians and executives at state-run enterprises such Petrobras in return for lucrative contracts. (Reporting by Ana Mano; Editing by Steve Orlofsky)

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