SAO PAULO — A Brazilian judge has ruled that the local subsidiaries of oil company Shell and the world’s largest chemical company, BASF, must pay $382 million into a compensation fund to potentially cover more than 1,000 workers who allege they were contaminated and sickened at an agricultural chemical plant.

By Associated Press, Published: July 2
SAO PAULO — A Brazilian judge has ruled that the local subsidiaries of oil company Shell and the world’s largest chemical company, BASF, must pay $382 million into a compensation fund to potentially cover more than 1,000 workers who allege they were contaminated and sickened at an agricultural chemical plant.
BASF SA said in a Monday statement that it would appeal the ruling by judge Maria Ines Correa Targa. Shell SA said it would abide by the decision pending a higher court’s ruling on the workers’ class-action lawsuit that is before a court in the national capital, Brasilia.
Prosecutors said any money actually paid into the fund would be frozen until the workers’ damage suit is finalized — but they wanted it in the fund as a guarantee.
The companies were earlier ordered to make payments by two courts. But the case revolving around a plant in the city of Paulinia, 75 miles (120 kilometers) northwest of Sao Paulo, was appealed to a higher court.
Targa wrote in her ruling Thursday that Shell and BASF engaged in “reprehensible conduct” seeking to “circumvent their obligation.” read more
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