PLDT offers $3M as U.S. settlement

If approved by the Court, the settlement will resolve the US Class Action in its entirety as against all defendants

Telecommunications giant PLDT Inc. is offering a $3-million settlement to resolve the class action lawsuit filed against them in a US court concerning an alleged P48-billion capital expenditure spending overrun.

The Pangilinan-led telecommunications firm confirmed on Thursday that it entered into a Stipulation of Settlement submitted to the US District Court for Central District of California last 16 February.

Upon court approval and notification of the settlement class, the members of the settlement class will receive a payment of $3 million.

Overrun woe

However, PLDT reiterated that “the proposed settlement agreement contains no admission of liability, fault or wrongdoing by any defendant.”

“If approved by the Court, the settlement will resolve the US Class Action in its entirety as against all defendants,” it added.

PLDT has committed to investigating the results of an internal audit that uncovered an aggregated capital expenditure investment amount of P379 billion from 2019 to 2022, including a budget overrun of P48 billion.

Back then, PLDT explained that the “bulk of the P48 billion capex overspend involves the procurement of network equipment necessary to provide stronger connectivity to subscribers, specifically 5G cell sites for our mobile network and fiber rollout.”

As a listed company, PLDT was then asked by the Philippine

Stock Exchange to clarify its statements. In response, the PLDT said investigations were ongoing.

The said disclosure prompted a class action suit in February last year filed by Sophia Olsson and Kevin Douglas, both shareholders of PLDT securities.

They claimed that PLDT’s public disclosures were false or misleading and that it “failed to address weaknesses that allowed such budget overruns.”

Olsson claimed to have owned two shares and lost $22.69, while Douglas held 35 shares and suffered losses worth $240.23 after the budget overrun was disclosed. They were represented by Rosen Law Firm and Levi and Korsinsky, LLP.

Last April, PLDT filed a request to the California Court to dismiss a class action lawsuit. Specifically, they asked for the rejection of Olsson and Douglas as lead plaintiffs.

PLDT argued that these individuals did not meet the basic requirements of the US Private Securities Litigation Reform Act.