BP Sued Over Employee Stock Plan Losses After Spill
Business Law
BP Plc was sued by members of its employee savings plan over losses tied to the company’s plunging stock price amid the oil leak disaster in the Gulf of Mexico.
BP has lost more than half of its market value since the April 20 explosion that caused the largest oil spill in U.S. history. The fire and blast aboard the Deepwater Horizon drilling rig that was working on a well for London-based BP killed 11 members of its crew.
The lawsuit, for which the workers are seeking class- action, or group, status was filed yesterday in federal court in Chicago.
“Defendants knew or should have known that investment in BP Plc equity was -- and continues to be -- an imprudent investment of the ESP’s assets due to serious mismanagement and improper business practices that resulted in catastrophic incidents of international significance, including, among others, the BP spill in the Gulf of Mexico,” the plaintiffs claimed.
Full-time, part-time, occasional and temporary employees are eligible to invest in the employee savings plan, or ESP, according to the lawsuit. Regulatory filings show that the plan held $2.45 billion worth of BP American depositary shares, or 29 percent its $8.27 billion of assets, at the end of 2009, according to the complaint.
Related listings
-
At spill hearing, BP CEO says he's 'deeply sorry'
Business Law 06/17/2010Chastened by heavy criticism from lawmakers, a grim-faced BP chief executive Tony Hayward said Thursday he was "deeply sorry" for his company's catastrophic oil spill in the Gulf of Mexico."I understand the seriousness of the situation, the frustrati...
-
Lehman, Nortel, Bank of America, Google in Court News
Business Law 06/07/2010Lehman Brothers Holdings Inc.’s ex- Chief Executive Officer Richard Fuld asked a judge to dismiss a lawsuit accusing him and his colleagues of failing to disclose Repo 105, a financing method allegedly used to conceal billions of dollars of debt, acc...
-
Cleanup Costs and Lawsuits Rattle BP’s Investors
Business Law 06/04/2010BP shareholders are fleeing the company’s stock amid growing uncertainty about the ultimate bill for cleanup costs, lawsuits, fines and damage to the oil giant’s reputation. BP’s shares fell an additional 15 percent on Tuesday, as investors reacted t...
New Rochelle, New York Personal Injury Lawyers
If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.