BP Directors Sued by Investors Over Gulf Spill Costs [View All]

[sabra]

Source: Bloomberg

May 24 (Bloomberg) -- Directors of BP Plc, the largest producer of oil and natural gas in the Gulf of Mexico, were sued by investors who contend they were negligent in failing to monitor safety operations before a massive, continuing spill.

The April 20 wellhead explosion and fire in the Gulf claimed the lives of 11 workers and “threatens to be the worst oil spill disaster in history,” shareholder Southeastern Pennsylvania Transportation Authority claims in a Delaware Chancery Court lawsuit filed May 21 in Wilmington.

Directors violated their duties to the company, causing “enormous economic harm for failure to act in the interests of BP and its shareholders” and exposing the company to liabilities in the billions of dollars, Septa lawyers contend.

The lawsuit lists potential damage claims of about $2.5 billion to the Gulf fishing industry; $3 billion to tourism; $700 million in remediation efforts so far; $6 million a day in continuing costs and “incalculable damages to BP’s reputation.”

The complaint also says BP’s stock-drop has wiped out about $40 billion in market value.

Read more: http://www.businessweek.com/news/2010-05-24/bp-directors-sued-by-investors-over-gulf-spill-costs-update1-.html