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The phrase "were understood to" is correct and commonly used in written English.
It is often used to indicate that a certain understanding or interpretation was generally accepted or assumed by others. Example: The new policy changes were understood to be effective immediately, causing some confusion among employees who were not informed beforehand.
Exact(60)
His family were understood to be trackside at the time.
Videos emerged of mobs lynching two people who were understood to be mercenaries.
The Americans were understood to be sharing their aerial photographic intelligence with the Lebanese Army.
Within the campaign, however, the Obama data operations were understood to have shortcomings.
But four workers were understood to be involved in the sabotage attempt.
Sources at United were understood to have been unaware of his potential issue.
Fifa executives from Asia and Africa were understood to be strongly in favour of the idea.
Three of the prisoner employees were understood to be managers at the company.
Eight of those taken to hospital were understood to be seriously ill.
Cameron and Merkel were understood to have slept on sofas in their delegation rooms.
Rather, they must be interpreted to mean what they were understood to mean when the people ratified them.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com