BP Investors Lose Lawsuit Against Company Regarding Fraud

Tia Oja,

Correspondent (Business)

 

WASHINGTON, D.C. – A group of BP investors have tried suing the company, accusing BP of fraud and misleading them before and after the oil spill incident in 2010 at the Gulf of Mexico. The investors sued BP on April 2010 as they claimed that the oil spill, which has been called the largest in U.S. history, made BP’s shares plummet in value by roughly 40%.

A US federal judge has overruled the lawsuit. However, Reuters reported that US. District Judge Keith Ellison will allow the plaintiffs another chance to argue their case should they move forward as a class action. The plaintiffs have been given 30 days to do this.

Since the infamous oil spill incident, BP has paid more than $40 billion in charges and more is expected to follow. It is not certain yet how much the company will be expected to pay if the investor’s lawsuit successfully moves forward. In addition, the US Environmental Protection Agency has banned BP from making new contracts since last year, on the basis of the disastrous oil spill incident. The UK government has since publicly supported BP against the ban, as it prevents the company from making contracts which directly affects jobs and pensions in Britain.

Interestingly enough, despite the bad publicity in recent years, BP is, according to 2012 revenues measurements, the world’s fifth largest company and, measured by production, the world’s sixth largest oil and gas company. Regardless of the 2010 disaster, BP has somehow been able to keep afloat.

During almost three years of bad publicity BP has worked hard trying to clear its name. Including a recent uplifting news story about BP supporting a project at Brunel University, where the company will support funding a multi-disciplinary master’s course in engineering for both male and female students.

Image Courtesy: Wikimedia Commons (Infrogmation of New Orleans)