This settles only the class-action lawsuit brought on by shareholders accusing the company of understating the severity of the 2010 oil spill in the Gulf of Mexico. Other legal actions related to securities concerning the oil spill is still on.
BP Plc has agreed to settle the class-action lawsuit brought on by shareholders who accused it of misleading them by understating the severity of the 2010 oil spill in the Gulf of Mexico.
BP has now agreed to pay $175 million to the shareholders saying the claims will be paid during 2016-2017.
It has however clarified that this settlement does not resolve other litigations related to securities in connection with the spill.
Earlier in 2014, U.S. District Judge Keith Ellison had said in Houston that investors who bought BP’s American depositary shares after the explosion, could pursue claims from the company since BP had publicly “lowballed” the oil flow rate, and the ensuing price of its shares “did not reflect the magnitude of the disaster facing the company.”
Furthermore, in 2016, in a separate legal suit, U.S. Judge Carl Barbier had granted final approval to the company’s civil settlement over the Gulf of Mexico oil spill after it reached a deal in July 2015 to pay up to $18.7 billion in penalties to the U.S. government and five states.
The rig explosion of April 20, 2010, was the worst offshore oil disaster in U.S. history. More than 11 workers were killed and millions of barrels of oil had spewed out onto the shorelines of several states for almost three months.
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