A Texas federal judge has preliminarily approved the $175 million settlement between BP PLC and a class of investors alleging the company downplayed the magnitude of the Deepwater Horizon oil spill in the weeks following the blowout. U.S. District Judge Keith P. Ellison rejected a bid by 135 institutional investors to modify the settlement opt-out procedures. BP’s settlement resolves a certified class action alleging the company misrepresented the seriousness of the explosion and its aftermath. As all of us now know, 11 workers were killed and an estimated 4.9 million barrels of crude oil were spilled into the Gulf of Mexico, causing tremendous harm and damage.
The class covers anyone who purchased ADSs between April 20, 2010, when the explosion occurred, and May 28, 2010, when it became apparent that the oil flow from the broken well head was much higher than initially disclosed by BP. If that information had been available to the market, the class alleged, the price of BP stock would have been lower when they bought their shares.
The Plaintiffs Steering Committee for the individual action is comprised of Pomerantz; Spector Roseman Kodroff & Willis; Kessler Topaz Meltzer & Check; and Kirby McInerney. The settlement class is represented by lead counsel Cohen Milstein Sellers & Toll and Berman DeValerio. The MDL is In re: BP PLC Securities Litigation in the U.S. District Court for the Southern District of Texas.
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