Brazil’s Petrobras said Wednesday it is not negotiating a settlement with U.S. authorities tied to alleged corruption following a report that claimed the state owned company was in talks to pay a record fine.

In a filing with the U.S. Securities and Exchange Commission, the company said “there are no ongoing negotiations regarding the eventual payment of a fine for the winding up of civil and criminal investigations in the United States regarding the violation of the anti-corruption legislation.”

The company added that there has been no decision made by any U.S. authority regarding “the merit of such an investigation or the eventual amounts involved.”

The statement was made in response to a Reuters report that said the company was in talks to pay a record breaking $1.6 billion settlement for alleged corruption.

Last November, Petrobras received a subpoena from the U.S. Securities Exchange Committee (SEC) for unspecified documents.

The U.S Department of Justice (DOJ) declined to comment on the matter when the subpoena was issued.

Neither the DOJ nor the SEC have confirmed that they are investigating the company.

Petrobras has been embroiled in an ongoing corruption probe in Brazil that has landed several executives in jail and forced former CEO Maria das Gracas Silva Foster to resign in January.

Former Petrobras executive Paulo Roberto Costa alleged in September that executives at several companies were inflating the price of Petrobras contracts and skimming off the excess funds.

Some of the funds also ended up in the coffers of Brazilian politicians and political parties, Costa claimed.

Dozens of Brazilian politicians have been pulled into the probe, including former Brazilian president Luiz Inacio Lula da Silva.

According to the BBC, Lula da Silva is being investigated for allegedly using his influence to help Brazilian construction firm Odebrecht win overseas business after he left office.

Earlier this week, former Petrobras international chief Nestor Cerveró was sentenced to 12 years and three months in prison for money laundering and corruption charges tied to a bribe he allegedly paid lower house speaker Eduardo Cunha.

Cerveró was sentenced to five years in prison in May for allegedly laundering funds he had stolen from Petrobras through a front company.

In June, Petrobras asked a U.S. district court judge to throw out a multi-billion dollar investor lawsuit tied to the corruption probe, claiming that the company was also a victim of fraud.


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