Oil Spill Securities Cases Barred By High Court, BP Argues

Law360, New York (May 6, 2011, 7:05 PM EDT) -- BP PLC on Thursday pushed back hard against a group of securities class actions stemming from April 2010's Deepwater Horizon disaster, saying the plaintiffs' attempt to turn a corporate mismanagement issue into a fraud claim are barred by previous precedent.

In a series of motions to dismiss filed in federal court in Houston, BP said the U.S. Supreme Court in its 1977 decision in Santa Fe Industries Inc. v. Green blocked securities fraud claims that grow out of “possible corporate mismanagement, viewed retrospectively.” For that reason,...
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