Even BP own shareholders are suing them....

[Statistical]

Citing the company's history of safety lapses, cost cutting, and workplace disasters, shareholders who purchased stock in BP have filed a class-action lawsuit based on claims that the company mislead investors prior to the Deepwater Horizon oil spill in the Gulf of Mexico. The suit, filed in the U.S. District Court for the Eastern District of Louisiana, seeks to represent not only American investors, but also people around the world who bought shares in United Kingdom-based BP.

...

The lawsuit notes BP's prior statements about its Gulf operations being a primary economic driver, and the company's assertions that it had the technology to safely conduct the operations. But nearly a month after the catastrophic explosion at the Deepwater Horizon, BP's Chief Executive Officer Anthony B. Hayward admitted that BP did not have the technology available to stop the Gulf leak.

...

In the current case, shareholders claim BP violated the Securities Exchange Act of 1934 by issuing false and misleading statements about safety, technology, inspections and precautions at its offshore oil facilities. At the time of the latest disaster, BP shares were trading at nearly $60, but since have lost nearly half their value.

http://www.prnewswire.com/news-releases/bp-shareholders-file-lawsuit-over-gulf-oil-spill-96037319.html

The Exchange Act of 1934 (specifically Rule 10b-5) allows investors to recover damages as a result of fraudulent statements by the company. Given the company stock has lost a combined value of $70 billion the class if successful could be a huge liability to the company.

Generally lawsuits like this are longshots because the plantiff must prove that not only did BP make a materially false statement but it did so intentionally. However there may be internet company documents showing BP was aware they had no method to stop a gusher like this. If so and they are found in discovery there is a chance of a case here.

[KharmaTrain]

1. Don't Hold Your Breath...

BP has an army of lawyers fast at work ready to tie up any and all civil suits for as long as they can. They're already judge shopping and are sure to do everything they can to delay and force the litigants to burn up lots of money. Then, as the article states, the burden of proof has to be "ironclad"...there has to be lots of smoking guns showing total corporate negligence. It may happen if there's a full criminal investigation and prosectuion, but, again, you can bet lawyers will be putting up one roadblock after another in any stockholder or personal claims.

The real liability is to Tiny Tony's job. He's the face of this disaster and I expect that his tenure as CEO will not be very long but the company will soldier on.

[Statistical]

2. Oh I agree it is a longshot

even stated that :)

You likely are right it may be possible the US govt comes across material, witness, documents, emails in the course of their investigation that becomes material to this case.

[LiberalFighter]

6. Just tell the lawyers they have to scoop up their pay from the ocean.

Cause if BP is losing money like water in a sieve how else will they get paid?

[Statistical]

7. BP hasn't lost money yet.

BP pretax profit is $25 billion per year, roughly $2 billion per month.

Since the leak started BP has paid $1.2 billion in mitigation/cleanup/claims so far.
In the same amount of time they have cleared roughly $4 billion in cash.

[KharmaTrain]

8. The Consigliaries Always Get Paid...

Welcome to the age of the "restructured" bankruptcy. Watch BP declare Chapter 11...firstly to prevent many suits from being filed and protect billions in assets while litigation is pending. Then they'll stiff the small investors by wiping out the value of their stock. The lawyers will be billing all the way...and getting paid.

[dipsydoodle]

3. In aggregate

all claims may now to exceed BP's reserves in which I can only suggest an orderly queue is formed ready for the outcome of the court cases in 20 or so years time from now.

[TexasObserver]

4. It's the smart move. Only discovery will allow them to see what BP really knew.

There may be insurance policies that pay in the event of director or officer liability on the part of BP, which policies are triggered by claims such as this one.

There will likely be a march to identify the policies at risk, and then build a case large enough to settle for insurance coverages. Even if a company goes into bankruptcy, its insurance for liability continues to be at risk, irrespective of the bankruptcy. Typically, such insured loss cases are allowed to go forward.

Only litigation and the discovery subpoenas and depositions it brings can reveal what the top people of BP did which led to this disaster. They likely cut corners in dozens of ways that are obvious in the records, decisions mandated by cost savings over safety. BP has a terrible record in that regard. They're so much worse than the other majors it's hard to believe.

[Stevenmarc]

5. Exactly