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Court knocks down BASF, Shell Brazil payment

Published July 04, 2012

Associated Press

SAO PAULO –  Brazil’s top labor court has knocked down a judge’s order that Shell Brasil SA and BASF SA deposit $382 million into a fund for workers allegedly contaminated at a chemicals plant.

An emailed statement from the court Wednesday says its lead judge ruled a day earlier in favor of an appeal against immediate payment. A class-action lawsuit seeking compensation from the companies remains before the labor court.

A federal judge in late June ordered the subsidiaries of Royal Dutch Shell PLC and BASF SE to pay into the fund now. Prosecutors sought the order, saying the cash should be immediately available in case workers win the overall lawsuit.

Both Shell and BASF welcomed the new ruling and say they will abide by all legal decisions in the case.

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