PLDT to pay $3 million in lawsuit settlement over budget overrun
PLDT Inc. is set to pay $3 million in relation to the securities class-action lawsuit filed by US shareholders due to the company’s budget overrun, the telco giant announced on Thursday.
On Feb. 16, the company entered into a “stipulation of settlement” to resolve the class action filed by its shareholders in the Central District of California, PLDT said in a disclosure.
“Under the proposed settlement, which is subject to approval by the court following notice to the settlement class, the settlement class will receive payment of a settlement amount of $3,000,000,” it said.
The proposed payment of the settlement amount does not signify admission of liability, lapses or fault by any defendant, PLDT also said.
“If approved by the Court, the settlement will resolve the US Class Action in its entirety as against all defendants,” the company added.
To recall, in 2022, the company discovered a P48-billion discrepancy, which accounts for about 12.7% of its P379-billion capital expenditure over the past four years since 2019.
Last year, PLDT confirmed that a US shareholder filed a securities class-action lawsuit against the company, alleging violations of Federal Securities Laws.
The case cited the company’s disclosures indicating a budget overrun of P48 billion during the period.
At the stock exchange on Thursday, shares in the company closed P10 or 0.78% to end at P1,298 each.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. —