Pension Funds in Texas Suing BP Regarding Oil Spill

The oil spill involving Deepwater Horizon and BP is still making waves, even years after the incident, as pension funds in Texas and other states are now suing the energy company. They claim that investors were defrauded because the statements that BP put out were not true.

Specifically, they said that the people who managed the investments used the reports from BP to decide that they should buy stock. Since those reports were false, this misled the investment managers. They made decisions about the stock that would not have been made if they had been given accurate information.

Similar lawsuits have been filed and thrown out in the past, but they were lawsuits that originated in other countries, and the Supreme Court decided that the laws regarding securities in the United States do not also have to apply outside of the country's borders. However, these charges that are starting within the US have been allowed to continue.

Generally speaking, investors said that the fraudulent claims came in 2007 when BP told those who were working with investments that they were going to take the proper steps to institute further safety measures. This, say the investors, was not done. They look at the guilty plea that was submitted by BP, finding admissions from the company that safety measures had not been taken, culminating in the spill in 2010.

Those who use a business pension plan should know what rights they have to look into charges like this if their investment plans have lost money due to the fraudulent nature of another company, one in which they purchased stock. They should also know what the company that runs the pension plan is obligated to do when information like this becomes available.

Source: The Times-Picayune, "Louisiana, Texas, Maryland, private pension funds file Deepwater Horizon oil spill fraud suits against BP" Mark Schleifstein, Apr. 21, 2014