New York City Employee Pension Funds Sue BP Over Gulf Oil Spill
BP is being sued by the New York City pension funds for $39 million. The New York City pension funds claims that BP misled investors that led to over $39 million in investment losses. Going back to 2010, BP’s deep water horizon drilling rig caused 4 million barrels of oil to be spilled into the Gulf killing 11 workers in the process. The spill was ranked as the biggest spill in U.S history, yet BP misled their investors by reporting minimized damages and costs to shareholders. This is not the first case involved with BP. Last year BP paid 8.5 billion to settle several cases and $4 billion to the U.S government for criminal penalties. A $17 billion claim is also in effect over violations of the US Clean Water Act.
The actions taken by BP were unethical and all information should have been disclosed to shareholders. The risk involved with the largest oil spill in the US history is high and misleading shareholders could have had a serious impact on both the economy and the company itself. Although BP was smart in minimizing their losses, being ethical is still key in a business.
Written by: Wilson Tang