BP to pay $175M to shareholders in Gulf spill settlement
- Business & Finance
British oil company BP, has resolved a Deepwater Horizon security litigation through a settlement with the plaintiffs / shareholders.
In May 2014, the federal district court certified a class of post-explosion American depositary shares (ADS) purchasers in the MDL 2185 securities litigation, where the ADS shareholders were seeking damages for the losses incurred by the Deepwater Horizon blowout and the effect it had on the company’s share price.
More precisely, the investors had alleged that had BP intentionally misrepresented and downplayed the flow rate of oil into the Gulf during April and May 2010, eventually causing losses to the shareholders involved in the case.
In a statement on Friday, BP said it agreed with the representatives of the post-explosion to settle these class claims for the amount of $175 million, payable during 2016-2017, subject to approval by the court.
This settlement does not resolve other securities-related litigation in connection with the Gulf of Mexico oil spill, the company said.
Offshore Energy Today Staff