Shareholders Sue BP
October 5th, 2006 | by Brian Carr |A group of shareholders has filed a classaction lawsuit against BP Plc, one of the world’s largest oil companies, claiming negligent oversight has put the company in a very vunerable financial position.
The lawsuit references three distinct incedents as evidence that BP’s management acted careless and not in the best interest of the shareholders. The three incidents are:
- The Prudhoe Bay Pipeline leaks, which caused America’s largest oil field to shut down for a period of time, although the field is now almost fully restored.
- A 2005 refinery explosion, in which 15 workers were killed.
- The manipulation of propane futures.
Recently BP announced that its oil production will fall for the fifth straight quater, due in large part to the shut down of Prudhoe Bay, and in the past two and a half months, the company’s stock is down almost 10%.
Think BP wishes it would have put more of its billion dollar quarterly profits towards maintaining its infrastructure and expanding its oversight?
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