Liability, awards & settlements

12. 7, oil reserves, settlement

US: Royal Dutch Shell will pay more than $90mn 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 would pay $90mn to employees who participated in certain US employee saving plans. This figure includes lawyers’ fees, and Shell will pay up to another $1mn to cover other expenses incurred by the plaintiffs’ lawyers. Insurance will cover $25mn out of the total settlement, which is subject to court approval. 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 ousting of its top executives. Shell has already paid about $150mn in fines to US and UK financial regulators over the scandal.