9th Circ. Nixes Securities Fraud Claim Against BP

Law360, New York (June 29, 2011, 6:23 PM EDT) -- The Ninth Circuit on Wednesday knocked out a securities fraud claim against a BP PLC unit in a class action over a 2006 Alaskan oil spill, deciding that the alleged misstatements in an agreement filed with a regulator were insufficient to bring the allegation.

BP Exploration (Alaska) Inc.'s promise in U.S. Securities and Exchange Commission filings to act as a prudent operator is a breach of a contractual promise of future performance, which is insufficient for a securities fraud claim, the appeals court said.

The suit...
To view the full article, register now.