$43M Deal OK'd In Securities Suit Over BP Spill

$43M Deal OK'd In Securities Suit Over BP Spill - 4/9/2009 , Class Action News, Class Action, Securities News, shareholder class action, claim, litigation, securities action, common stock'>

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HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

SETTLEMENT NEWS:

$43M Deal OK'd In Securities Suit Over BP Spill
Shannon Henson

Securities Law 360. April 9, 2009
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EXCERPT: A federal judge has given preliminary approval to a $43.25 million settlement in a securities class action accusing BP PLC and BP Exploration Alaska Inc. of misleading investors about the integrity of its pipelines prior to a major 2006 oil spill that caused the oil giant's stock to drop. Judge Marsha J. Pechman of the U.S. District Court for the Western District of Washington signed off on the deal Wednesday. A settlement hearing to consider finalizing the deal is scheduled for June 30. The case dates back to October 2006, when two proposed securities class action complaints, which were later consolidated, were filed on behalf of purchasers of units of the BP Prudhoe Bay Royalty Trust. BP misled investors about its maintenance of the oil transit lines at the Prudhoe Bay oil field located on the North Slope of Alaska, the suits alleged. Specifically, the defendants represented to investors throughout the class period that they were maintaining and operating Prudhoe Bay in accordance with good oil and gas field practices and that production from BPXA's share of the bay would exceed 90,000 barrels of oil a day until at least 2012, an amended complaint said. But the defendants knew for years that the pipelines were not being adequately maintained, creating a risk of pipeline leaks and a potential shutdown, the amended complaint said. In March 2006, a BPXA employee discovered that at least 267,000 gallons had spilled out of pipelines in western Prudhoe Bay, forcing the company to shut down the oil field. After the spill, the defendants assured the public that its corrosion monitoring plan was aggressive and robust, the amended complaint said. But the pipeline leaked again in August 2006, causing the field to shut down once more.

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