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UK Shareholders File BP Lawsuit Over Losses

July 8th, 2014

Many leading BP shareholders based in the UK have joined together to file a BP lawsuit in the US. The BP lawsuit stems from lost earnings the company incurred due to the Deepwater Horizon oil rig blast in 2010. The BP lawsuit was filed by more than 30 BP shareholders, mostly from Great Britain, who bought their shares prior to the 2010 disaster and suffered severe financial losses from the collapse in the stock’s value after the spill.

BP Lawsuit Among First of Its Kind

Unlike prior BP lawsuits filed by individuals and businesses affected by the environmental consequences of the spill, this BP lawsuit is unique. The case represents the desires of British shareholders to recover their economic losses due to the plummeting price of BP shares, which fell by more than half after the spill and still have not returned to their pre-spill levels more than four years later. The plaintiff’s attorneys requested that the case be tried in the US, as award amounts are often much higher than under British law.

Pension Funds Affected by BP Lawsuit

The plaintiffs in the BP lawsuit include several British and European pension funds, which depended on the BP share values to maintain payments to their pensioners. Investors who purchased BP shares on the New York Stock Exchange were allowed to file BP lawsuits in US courts, but these pension funds purchased their BP stocks on the London Stock Exchange and other European stock exchanges. However, new rulings may allow those stockholders who purchased their shares overseas to have their cases heard in American courts.

US-Based BP Lawsuits Could Bring Higher Awards

A major incentive for overseas stockholders to bring their BP lawsuits to the US is that they expect to win much higher awards than they could receive in their own jurisdiction. An attorney for the US-based law firm handling the case told the London Evening Standard that allowing European stockholders to bring their cases to American courts “raises the prospect of recoveries where significant losses have been incurred.” A BP spokesman called the lawsuits “meritless” and said the company “will continue to vigorously dispute them.”

BP Lawsuits Continue

The UK-based BP lawsuit is the latest in the problems facing the company since the oil spill. BP has previously paid out more than $30 billion in compensation to hundreds of Gulf Coast residents who lost homes, businesses and livelihoods. Many local jurisdictions, including the State of Texas, Harris County and the City of Houston, have all filed BP lawsuits against the company, citing the loss of tax income due to economic damage and declines in tourism.

Source: Russia Times

Know Your Rights in a BP Lawsuit

To find out how we can help you with a BP lawsuit, contact us today at 1-855-877-7455. Our friendly staff will ask a few questions about your case and connect you to a BP lawsuit attorney. You can also fill out the “Free Case Evaluation” form at the top of this page.

 

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