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Reuters: Shell to pay over $90 million to settle class action Tuesday

Reuters: Shell to pay over $90 mln to settle class action Tuesday

“Royal Dutch Shell said on Tuesday it had agreed to pay more than $90 million to settle a class action lawsuit taken by employees in relation to a reserves overbooking scandal last year.”: “Shell shocked investors in January 2004 by slashing its proven reserves of oil and gas. The revelation that the firm had been exaggerating the size of its reserves for years sent its stock tumbling and led to the ouster of its top executives. Shell, the world’s third largest oil group by market capitalisation, has already paid about $150 million in fines to U.S. and UK financial regulators over the scandal.”

Tuesday July 12, 2005

LONDON, July 12 (Reuters) – Royal Dutch Shell said on Tuesday it had agreed to pay more than $90 million to settle a class action lawsuit taken by employees in relation to a reserves overbooking scandal last year.

The Anglo-Dutch oil giant said in a statement it will pay $90 million to employees who participated in certain employee saving plans.

This figure includes lawyers’ fees, and Shell will pay up to another $1 million to cover other expenses incurred by the plaintiffs lawyers.

Insurance will cover $25 million out of the total settlement, which is subject to court approval.

“We are hopeful that the court will approve the settlement, which represents an important step toward putting litigation relating to the reserves recategorisations behind us,” said Beat Hess, Shell’s legal director.

Shell shocked investors in January 2004 by slashing its proven reserves of oil and gas. The revelation that the firm had been exaggerating the size of its reserves for years sent its stock tumbling and led to the ouster of its top executives.

Shell, the world’s third largest oil group by market capitalisation, has already paid about $150 million in fines to U.S. and UK financial regulators over the scandal.

http://today.reuters.com

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