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NEW ORLEANS, La. - The law firm of Berman DeValerio has filed a securities fraud lawsuit against BP plc, expanding the complaint to cover certain investors who acquired BP stock as early as mid-2005 (The Oklahoma Police Pension & Retirement System v. BP, et al., No. 2:10-cv-02013, E.D. La.).
The complaint, filed on behalf of the Oklahoma Police Pension & Retirement System, includes investors who purchased or otherwise acquired American Depository Shares (ADS) of BP between June 30, 2005, and June 1, 2010, inclusive and all U.S. investors who purchased or otherwise acquired ordinary shares of BP during the class period. In previous complaints, the class period for ordinary shares had extended back to 2008, at the earliest.
Berman DeValerio filed the complaint July 19 in the U.S. District Court for the Eastern District of Louisiana.
The action seeks to recover losses under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission, as well as state law claims.
The complaint claims that BP failed to disclose that the company's operations were being conducted in a highly reckless manner, as it lacked any legitimate plan to respond to an oil spill from its drilling activities in the Gulf of Mexico, which it had touted since at least June 2005 as a major growth area. Those concealed risks materialized with a fatal April 20, 2010, fire on the Deepwater Horizon oil rig that led to the worst oil spill in U.S. history, according to the complaint.
The resulting cost to investors will run into the billions of dollars, the complaint alleges. At the time of the rig explosion, BP shares traded for approximately $60 per ADS and approximately £655 per ordinary share. Since that time, however, the company's ADS and ordinary shares have fallen approximately 40 percent, eliminating billions of dollars of market capitalization.
Berman DeValerio is a national law firm with 39 lawyers in Boston, San Francisco and Palm Beach Gardens, Fla. For more information, visit www.bermandevalerio.com.
Download the complaint.
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