Friday, January 7, 2011

Remember BP? NY DOES

The New York State Common Retirement Fund will co-lead a class action lawsuit against BP, on the basis of its poor safety practices.
NYS Comptroller Tom DiNapoli is leading the suit with the Ohio Attorney General, who represents his state's public pension funds.
"BP publicly distorted its safety procedures and its level of preparedness to respon to a catastrophe such as the Deepwater Horizon explosion, thereby misleading investors and causing the value of BP's stock to plummet when the truth was exposed," said DiNapoli.
He argued that his responsibility to bring the suit on behalf of NYS was derived from his role as the trustee of the pension fund.
BP lost approximately 40 percent of its stock price following the incident in April. The state's pension fund held about 19 million shares at that time.
In July, NYS filed for co-lead plaintiff status in the lawsuit against BP. The suit also accuses the company of misleading investors in its ability to clean up the spill in a timely manner.

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