Employees Sue BP for Mismanaging Savings Plans
Employees have filed a lawsuit against BP’s North American unit for mismanaging their retirement savings plans by investing largely in company’s stock before last year’s Gulf of Mexico oil spill.
A consolidated master complaint filed last week in federal court in Houston says BP’s safety and compliance record prior to the tumbling of the Deepwater Horizon rig made the company’s US shares an imprudent investment.
The employees say BP North America, its directors and members of the savings-plan committee violated their fiduciary duty by buying BP stock and not divesting the plans of shares.
The complaint alleges that a disaster of the amount of Deepwater Horizon and the consequential losses were likely and foreseeable.
Plaintiffs have lost hundreds of millions of dollars in retirement benefits as the defendants failed to protect the participants’ retirement savings from being irresponsibly invested in an extremely risky BP stock fund, BP employees claim.
Several lawsuits had been filed last year by BP employees participated in the company’s retirement savings plans. All the suits claim losses in excess of 1 billion from the stock plunge following the rig explosion and resultant spill.
BP’s U.S. shares had initially lost more than 50 percent of their value after the blast. The workers are asking for a return of the profit that had been lost by investing in the BP stock fund rather than investing in other prudent funds within the plans that were available then.
Last changed: Jun 02 2011 at 3:17 PMBack
Please complete the confidential form below to get started.