Anadarko Petroleum. Who? Just know, if you don’t own shares in Anadarko Petroleum breathe easy. If you do own shares, you better strap yourself in. A shareholder lawsuit seeking class action status was filed against the petroleum company this week, on behalf of anyone who purchased company common stock of between June 12, 2009 and June 9, 2010, inclusive—otherwise known as the “Class Period”.
Anadarko, it seems, owns 25 percent of the Macondo/Deepwater Horizon well—you know—the gusher currently leaking millions of gallons of oil into the Gulf of Mexico with ramifications so far reaching it’s impossible to get your head around the scope of the disaster.
The suit alleges that Anadarko and certain of its officers, failed to disclose, “among other things:
1) that there was no effective Exploration and Oil Spill Response Plan for Macondo/Deepwater Horizon;
2) that BP implemented drilling procedures solely to cut costs at the expense of safety;
3) that the Company lacked adequate systems of internal, operational or financial controls to maintain adequate insurance reserves or to meet the known or foreseeable risks associated with its deepwater drilling liabilities; and
4) that defendants lacked any reasonable basis to claim that Anadarko was operating according to plan, or that Anadarko could achieve guidance sponsored and/or endorsed by defendants.”
And the allegations go on, mentioning false and misleading statements that were issued concerning the amount of the clean-up, and the company’s liability etc, all which culminated in massive drops in share prices. So it’s off to court they go.
Only one problem, if the company is stripped of millions of dollars in lawsuits, and this goes for BP as well, who’s going to pay for the clean-up, and all the other costs we haven’t even begun to see yet?
And it’s on from Big Oil to Big Banks…those leading lights of the international Continue reading “Week Adjourned: 6.26.10”