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BP P.L.C. Summary: According to the complaint, this action alleges that the defendants intentionally and/or deliberately recklessly failed to properly and safely maintain BP’s oil pipelines in Prudhoe Bay, Alaska. On March 2, 2006, a massive leak releasing more than 200,000 gallons of oil occurred in BP’s Prudhoe Bay oil pipeline. Criminal and civil investigations by federal and state agencies determined that the lead was due to internal corrosion caused by bacteria. BP’s own internal investigation revealed that the use of a “smart pig” – an industry-recognized good practice – could have discovered the internal corrosion. The Department of Transportation issued a Corrective Action Order on March 15, 2006 requiring BP Exploration Alaska to (“BPXA”) to take remedial action, including running a smart pig in the Prudhoe Bay oil pipelines. Defendants assured BP investors that its corrosion monitoring was “aggressive” and “robust.” Despite the severity of the March 2006 oil spill – the worst in the history of North Slope of Alaska – BP persisted with its inadequate maintenance of the Prudhoe Bay pipelines. On August 7, 2006, before the stock market opened, BP announced that BPXA was completely shutting down production in Prudhoe Bay after a second lead and resultant oil spill from another corroded pipeline occurred. A Congressional investigation on April 20, 2007 revealed that extensive cost cutting at BPXA may have contributed significantly to the pipeline corrosion that caused the March 2006 spill. BP pleaded guilty to a criminal violation of the federal Clean Water Action on November 29, 2007 and agreed to pay a $20 million fine in settlement of federal and state criminal violations in connection with the March and August 2006 Prudhoe Bay oil spills. During the Class Period, the Defendants had actual knowledge of, or recklessly disregarded, material facts and failed to disclose material information to investors concerning the maintenance and operating condition of the Prudhoe Bay pipeline. As a direct result of the market learning of the Defendants’ wrongdoing, the price of BP shares declined and plaintiff and the class suffered a loss on their investment in BP.
INDUSTRY CLASSIFICATION:
SIC Code: 2911
Sector: Energy
Industry: Oil & Gas - Integrated
| COMPANY/ISSUER NAME: | BP P.L.C. |
| COMPANY/ISSUER TICKER: | BP |
| COMPANY WEBSITE: | http://www.bp.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Bankinter Gestion De Activos, S.G.I.I.C., et al. v. BP P.L.C., et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint for Violations of Federal Securities Laws - Jury Trial Demanded | |||
| Type: Complaint | Date on the document: 02/29/2008 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 03/05/2008 | ||
| OTHER DOCUMENTS | |||
| Case Name and/or Number: | |||
| Type: | Date on the document: | ||
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