Shell pays out $353m to settle reserves lawsuits

Royal Dutch
is to pay out $353m (£178m) to non-US investors to settle
lawsuits pertaining to its 2004 reserves restatement scandal.

In what was the biggest scandal in the group’s 100-year history, Shell was
forced to cut oil and gas reserves by over a quarter as it emerged that the
reserves had been overstated and incorrectly accounted for.

The FT
reports that the investor groups that sued Shell included pension
funds and VEB, which represents individual shareholders in the Netherlands and
the Shell Reserves Compensation Fund, a foundation to formed to settle claims
from individuals.

Iain Richards, head of European governance at
Morley Fund Management
, Shell shareholders, said the settlement marked ‘an important step in the
process of drawing the Shell reserves misstatements issue to a close’.

Further reading:

Sakhalin to hit Shell reserves accounting

Shell auditors and former FD face lawsuit

Boynton steps down as Shell CFO

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