PLDT Inc., the Philippines’ largest integrated telecommunications company, disclosed Thursday that a court in the U.S. has approved the listed company’s proposed USD3 million settlement of a class suit due to overruns in capital expenditures between 2019 and 2022.
The litigation, initiated in 2023 by investors in PLDT’s American Depositary Shares, alleged that the defendants made materially false and misleading statements regarding PLDT’s capital expenditures and internal controls that resulted in cost overruns estimated at P48 billion.
PLDT said that on Sept. 17, the U.S. District Court for the Central District of California granted final approval to a settlement in the securities class action litigation against PLDT and certain current and former directors and officers of the company.
PLDT entered into a Stipulation of Settlement on February 16 this year to resolve the case. PLDT agreed to pay a total of USD3 million on ground it won’t admit liability, fault, or wrongdoing by any of the defendants.
The Court’s Judgment and Order confirms that the Court will retain jurisdiction over matters related to the implementation of the settlement and the distribution of the settlement fund.
This settlement marks a significant step in concluding the litigation, allowing PLDT to move forward while providing compensation to the affected investors. A number of executives have left PLDT in the wake of the discovery of the cost overruns.
