New York pension fund to sue BP for investment losses

[Poll_Blind]

Source: Reuters

New York state's pension fund plans to sue BP Plc to recover losses from the drop in the company's stock price following the worst oil spill in U.S. history, state Comptroller Thomas DiNapoli said on Wednesday.

New York's Common Retirement Fund has a long history of serving as the lead plaintiff in shareholder lawsuits. DiNapoli said the fund owned more than 19 million shares when the Deepwater Horizon rig exploded in the Gulf of Mexico in April.

DiNapoli, the sole trustee of the $132.6 billion state pension fund, has hired law firm Cohen Milstein Sellers & Toll to represent the fund.

"BP misled investors about its safety procedures and its ability to respond to events like the ongoing oil spill and we're going to hold it accountable," said the Democratic comptroller, who will stand for election in November in the race for New York comptroller.

Dennis MacKee, spokesman for the $104 billion Florida state pension system -- one the largest in the United States -- said: "We're monitoring the lawsuit and all developments," adding, "but we have not come to any decision."

Read more: www.reuters.com/article/idUSTRE65N62C20100624?type=domesticNews

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Much much more at the link. Why I posted this is it is one of the second batch of dominos that are starting to fall and I think it signals the beginning of the end of BP nomatter what.

Ultimately I fear, and I don't think this is a controversial or surprising viewpoint, that BP will go down for the count soon and there will be only a fractional amount of assets to pay for the damage they've caused as well as damage from lawsuits. Even if the relief wells can stop the damage from the gusher, the financial fallout has probably signed the company's death warrant.

"They" will pull the money and assets out of BP and just stick them into another reckless company.

Rince, repeat.

There is no way out of this that I can even remotely see that doesn't involve ground-breaking legislation.

PB

[customerserviceguy]

1. I don't see this getting anywhere

I can't think of any successful investor lawsuits that dealt with anything but total, provable fraud on the part of the muckety-mucks at the top. While cutting corners recklessly no matter how much risk it put the Gulf in was criminal, I don't think that the investors will prevail against the company assets as a whole.

If they cannot collect anything from the higher-ups, in effect, they will be suing themselves.

[dipsydoodle]

3. Neither do I especially given

on the shares are on BP's balance sheet @ 25 cents. It's called risk.

They'd also need to get line behind JP Morgan Chase who own c. 28% of BP shares anyway.

[exboyfil]

4. I have to agree

I have never understood shareholders suing a corporation. It is like suing yourself. Suing individual managers - now that might have promise. All of the passive investors (unless they had inside information not available to the rest) are in the same boat. They come after the government, lawsuits, general creditors, and bondholders. That is the risk you take when you buy equities.

[Grinchie]

2. You mean big oil is not risk free? Boo Hoo Hoo.

Are they going to sue GM as well? Oh, wait...

[Tx4obama]

5. NY can go to the back of the line. The folks in LA, AL, MS, FL are already in line. n/t

[hughee99]

6. It can't be. Only rich people own BP stock,

or at least that's what I've been hearing from the "screw the investors, put them out of business" crowd.

[SunnySong]

7. Sorry but this is a stupid suit... do you sue the blackjack dealer when you split fours. nt