Madrid, Spain: (Aug-29-07) A class action shareholders lawsuit was brought against Repsol YPF SA, alleging that the company misled regulators and investors over the level of its oil and gas reserves, principally in Bolivia. The class action suit was brought by shareholders in the US and was filed in a New York district court on behalf of holders of Repsol ADRs. The suit claimed that company executives knowingly or recklessly made numerous false and misleading statements concerning the company's business and financial results.
In a settlement reached, Repsol YPF SA agreed to enter into a deal which included an $8 million payout to resolve the class action claims. The settlement followed Repsol's announcement in January 2006 of a 25% cut in its proven reserves. [FORBES: REPSOL SECURITIES]
