US court OKs PLDT’s settlement of lawsuits; to pay $3M

PLDT. INQUIRER FILE PHOTO

The US District Court for Central District California granted final approval of PLDT Inc.’s settlement of class action suits—stemming from its P48-budget overrun back in 2022—filed against the telco giant and its current and former directors and officers last year.

The Pangilinan-led telco player is set to pay the complainants $3 million in total. “The settlement contains no admission of liability, fault or wrong doing by any defendant,” the company said in a statement on Thursday.

To recall, the lawsuits were filed by disgruntled investors who claimed financial losses stemming from PLDT’s P48-budget overrun in 2022.

READ: PLDT offers $3-M settlement of budget overrun US class suit

The accumulated overspending had started in 2019, covering four years in total, before it was uncovered just last December 2022, according to PLDT.

PLDT American Depositary Receipts fell by more than 23 percent on Dec. 19, 2022 following the disclosure on Dec. 16, 2023. On the same day, PLDT shares traded via the local bourse plunged by nearly 20 percent to P1,192 each, wiping out around P62 billion in shareholders’ value.

The telco giant has since completed the probe into the budget mess, stressing no fraudulent activities ensued.