Belfast Telegraph

UK Website Of The Year

BP to pay £121m to shareholders 'misled' over 2010 oil spill

Published 03/06/2016

BP was accused of understating the magnitude of the oil spill in order to prop up its share price
BP was accused of understating the magnitude of the oil spill in order to prop up its share price

BP has said it will pay out 175 million US dollars (£121.3 million) to investors over claims that the oil giant's management misled them about the severity of the 2010 Gulf of Mexico oil spill.

The settlement relates to shareholders who bought BP stock soon after the disaster, later claiming that the company understated its magnitude in order to prop up the share price.

The shareholders, who launched a class action lawsuit against BP, had sought a settlement of 2.5 billion US dollars (£1.7 billion).

But BP said the payout "does not resolve other securities-related litigation" in connection with the spill, so further payouts could be on the way.

The money will be paid to shareholders during 2016-2017.

BP has already agreed to dole out up to 18.7 billion US dollars (£13 billion) in a civil settlement with the US government and states affected by the spill.

Read More

From Belfast Telegraph