Beginning Next Week: InsideCounsel will become part of Corporate Counsel. Bringing these two industry-leading websites together will now give you comprehensive coverage of the full spectrum of issues affecting today's General Counsel at companies of all sizes. You will continue to receive expert analysis on key issues including corporate litigation, labor developments, tech initiatives and intellectual property, as well as Women, Influence & Power in Law (WIPL) professional development content. Plus we'll be serving all ALM legal publications from one interconnected platform, powered by, giving you easy access to additional relevant content from other InsideCounsel sister publications.

To prevent a disruption in service, you will be automatically redirected to the new site next week. Thank you for being a valued InsideCounsel reader!


More On

Whirlpool settles two-decade Brazilian lawsuit for $603 million

An unauthorized loan made my former employee is ordered to be repaid

Home appliance maker Whirlpool Corp. settled a 20-year-old lawsuit against its Brazilian subsidiary Wednesday by agreeing to pay nearly $603 to Banco Safra S.A.

In 1989, an unauthorized loan was taken out by a former employee of Embraco, a company that was acquired by the subsidiary. A Brazilian trial court ordered Whirlpool to repay that loan in 2000. The final payment amount continued to be disputed despite the judgment.

Whirpool will pay Banco Safra in two payments—the first installment of about $295 million will be paid in the third quarter, while the remaining $308 million) is expected to be paid in the first quarter of 2012. Whirlpool intends to fund the settlement from available cash.

"Given the recent opportunity to settle the case, and after fully considering all of the circumstances, the uncertainty and potential outcomes, it was a prudent decision and in the best interest of the Company and its stockholders to settle this case now," Whirlpool's CEO Jeff Fettig said in a statement.

Shardae Smith

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.