Canadian Manufacturing

Small victory for Shell, BASF in Brazil class action

by The Canadian Press   

Manufacturing BASF Brazil class action Shell

Judge reverses order to immediately pay $382 million into fund

SAO PAULO, Brazil—Brazil’s top labour 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 says its lead judge ruled a day earlier in favour of an appeal against immediate payment. A class-action lawsuit seeking compensation from the companies remains before the labour 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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