Skip to comments.BRITISH PETROLEUM PLC [NYSE:BP] SUED FOR SECURITIES FRAUD VIOLATIONS RELATING TO IT’S ADR’S
Posted on 06/05/2010 10:39:31 AM PDT by Brown Deer
British Petroleum, PLC Sued for Securities Fraud Violations Relating to Its ADR's by Law Offices Bernard M. Gross, PC -- BP
PHILADELPHIA, June 4, 2010 -- Law Offices Bernard M. Gross, P.C. commenced a class action lawsuit in the United States District Court, Central District of California on behalf of all persons who purchased or otherwise acquired the American Depository Receipts (ADRs) of (NYSE:BP), between April 16, 2009 and May 21, 2010, inclusive (the "Class Period"), against BP and Anthony Hayward for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from May 21, 2010. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or any questions concerning this notice, please contact plaintiffs' counsel, Deborah R. Gross or Susan R. Gross at 866-561-3600 or via email at email@example.com or firstname.lastname@example.org. A copy of the complaint can be viewed at www.bernardmgross.com.
BP is an oil and petrochemical company. BP had a board of directors meeting in California in 2009. The Complaint alleges that defendants made false and misleading statements and omitted to disclose material information during the Class Period concerning the facts that BP (a) was ill equipped to deal with a catastrophe; (b) had not taken the necessary precautions to prevent such a disaster from occurring, such as the installation of a backup blowout prevention valve on the sea floor; (c) had not prepared an exploration plan which adequately analyzed the project's oil spill risks; and (d) had not undertaken a risk assessment to determine whether, if such a catastrophe occurred, BP would be operationally able to contend with an oil spill or financially able to be responsible.
On April 21, 2010, the first trading day following the accident, the price of BP common closed at $59.10. Initially, limited information was available as to the harm caused, the reasons for the failure and the extent of BP's liability. On April 24, 2010, two oil leaks were found, with an estimated 1000 barrels a day leaking. As a result of this disclosure, BP's common stock price decreased from a close of $58.90 on April 23, 2010, to a close of $56.96 on April 26, 2010.
But the full truth had still not been disclosed. On April 29, 2010, BP disclosed that it had detected an additional leak, and now, 5,000 barrels a day were leaking. As a result of these disclosures, BP's stock price dropped from a close of $56.40 on April 28, 2010 to a close on April 29, 2010 of $51.70. On May 21, 2010, BP launched a live webcam of the riser flow and experts and BP both admitted that the prior estimates of the leakage were incorrect, and as of May 21, 2010, BP's stock price closed at $43.86.
Plaintiffs are represented by Law Offices Bernard M. Gross, P.C. The firm has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Any questions, PLEASE CONTACT:
Law Offices Bernard M. Gross, P.C.
Susan R. Gross, Esquire
Deborah R. Gross, Esquire
Telephone: 866-561-3600 (toll free)
E-mail: email@example.com or
Sounds like this whole fiasco has been manufactured.
How many of us have Mutual Funds that include BP stock? This could be Hugh!
class-action lawyers never made anything better, and unless they are herded into a pit and set afire, thereby warming bystanders, they never will.
Standard operating procedure for a junkyard lawyer.
Holders of BP had a few days to sell post-explosion without undue (>5%) damage.
Compare that price action to, for example, FDA denial of efficacy of a drug in phase III testing: Likely to be 15%-70% for a tiny biotech company, or 10% or more from a MRK or BMY.
The problem needs to be fixed first. Once that is completed, then look at law suits. I don’t believe that taking BP to court now will solve anything. Except for one thing...........It may further Washingtons wishes to stop all drilling.
“Sounds like this whole fiasco has been manufactured.”
Takes the spotlight off of the financial thieves on Wall Street that have robbed us of billions in tax money.
Also Goldman Sachs sold over a third of their BP stocks 3 weeks before the spill.
Thios just keeps getting better.
The timing looks suspicious. It has “community organizer” written all over it.
Stupid thieving plaintiffs’ attorneys.
Sure doesn’t take long for vultures to circle... While at minimum, I believe BP dropped the ball - BIG TIME, it is still premature to start filing lawsuits. How about letting them conclude whatever they are going to do to stop/clean up the oil.
While I believe that BP did skimp on safety (and records that have been revealed verify that - with the blessings of the CURRENT ADMINISTRATION....) - this lawsuit is somewhat akin to suing someone because an unforseen problem with their automobile (one they had no way to know was brewing) caused an auto accident.
(The MD-10 was a not-terribly-well-built passenger jet built by McDonnell-Douglas Corporation. Every time one of them crashed, about once every 2 yrs or so, MD shares plunged 10-20 %, then bounced back directly after all the old ladies were through selling.)
Should've bought 100 of the blasted puts; I bought just 15, dammitall. Oh, well, a profit is a profit.
The Obama / White House / Administration scandals keep adding up.
“And the band plays on.”
Yes, just the long puts were a wise play, perhaps even more so if you owned the common.
Me? I just dodged a big fat bullet because I was just about to buy 1K shs BP common in search of the fat div in the folks account probably 1 week before the blowup. Just got distracted and never did. Phew! (substitute candidate: RDS-B)
Really, I didn’t know that.
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