PLDT enters into $3-million settlement over US class action suit

Pangilinan-led telecommunications giant PLDT Inc. has entered into a settlement deal to resolve its class action suits filed in the United States in relation to its budget overrun issue last year.

In a disclosure to the Philippine Stock Exchange on Thursday, PLDT said the Stipulation of Settlement was signed on February 16, 2024.

“Under the proposed settlement, which is subject to approval by the Court following notice to the settlement class, the settlement class wil receive payment of a settlement amount of $3,000,000,” the telco said.

In February last year, two individuals —Sophia Olsson and Kevin Douglas— filed separate motions against current and former officials of PLDT in a US court, alleging they incurred losses following PLDT’s disclosure of the budget overrun, calling on the court to award them reasonable costs and expenses incurred in the legal action.

In December 2022, the telco disclosed an initial budget overrun of P48 billion, representing 12.7% of its capital expenditure from 2019 to 2022. This was later scaled down to P33 billion, after settlements with major vendors.

PLDT had argued against the motions of Olsson and Douglas as it “fall far short” of the basic requirement needed for a lead plaintiff to show that he or she is an adequate representative on behalf of the putative class. 

“The proposed settlement agreement contains no admission of liability, fault or wrongdoing by any defendant,” PLDT said.

“If approved by the Court, the settlement wil resolve the US Class Action in its entirety as against all defendants,” it added. —NB, GMA Integrated News