BP

Week Adjourned: 6.26.10

Top Class Actions

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”

Week Adjourned: 6.18.10

Top Class Actions

Corexit Surely Didn’t Correct It. Up until yesterday, I was thinking that at some point in the distant future the BP oil spill may begin a positive chapter, the toxic gusher will finally be capped and the clean-up will begin to make a meaningful impact—we may even be fortunate enough to see the return of some species that are currently threatened with extinction—including the fishermen.

Then, I saw this: a class action lawsuit filed yesterday, alleging that BP and Nalco Holding Company intentionally sprayed “Corexit 9500” dispersant into the Gulf of Mexico with full knowledge of its dangerous toxicity. The suit alleges that the dispersant was sprayed entirely to lessen BP’s financial exposure and cleanup efforts relating to the oil spill.

Then I thought to myself ‘Wasn’t BP was on the verge of collecting an award for its environmental achievement just days before this disaster occurred? How could any ethically responsible corporate citizen engage in this activity with any kind of knowledge of the dangers?’ Of course the key point here is ethics…or the complete lack of them.

According to a press release about the suit, “When administered the dispersant, Corexit 9500, attaches to the oil causing both the oil and the chemical to sink below the surface of the water eventually settling to the sea floor. Studies have demonstrated this process will permanently alter the biosystem and food chain in the Gulf.” (See the above vid from msnbc where Dr. Seth Forman talks about the potential impact on Corexit on the rest of us.)

But it gets worse, if that’s even possible. “This chemical has been banned in the UK for over a decade,” the press release states. “Corexit is four times as toxic as the oil itself. Oil is toxic at 11 ppm, but Corexit is toxic at only 2.61 ppm. Corexit was banned from use in the United Kingdom because it did not pass the ‘Rocky Shore Test’ which Continue reading “Week Adjourned: 6.18.10”

Week Adjourned: 4.30.10

Top Class Actions

Is GM cutting corners? Maybe. Certainly Jimmy Hendon believes they are, so he filed a class action lawsuit against the automotive manufacturer, over alleged unfair business practices associated with its extended warranty plans.

Mr. Hendon is claiming that GM improperly calculated his prorated cancellation refund associated with his GM Major Guard Vehicle Service Contract. Hendon purchased the extended warranty in 2006 as additional 12 month/44,000 mile coverage to the GM standard 36 month/36,000 mile factory warranty which came with the new 2006 Chevy Avalanche he had just bought. Hendon canceled the extended warranty in 2009, with 18,483 miles remaining on the contract.

Specifically, the complaint alleges that GM calculated Hendon’s refund by taking the remaining miles divided by the 80,000 total miles under warranty, resulting in a $295 refund. Hendon claims GM should have calculated his refund by dividing his remaining miles by the 44,000 mile extension, resulting in a $580 refund.

The suit claims that GM should be prorating the canceled refund by dividing the remaining miles or days by the number of miles or days that the service contract extended the factory warranty.

While you may think that $200 or $300 may not sound like much for GM—why would they bother?—if you multiply that sum over the potentially thousands of folk in similar situations to Jimmy—well heck, you might just have enough for a bailout payment…

The Gulf of Mexico Tragedy in the Making… Hopefully BP won’t get away with this environmental Continue reading “Week Adjourned: 4.30.10”

Week Adjourned: 2.5.10

Top Class Actions

Toyota: “Moving Forward” Alright. This week is really the week of the Toyota class action. I have to be honest—I’ve lost count as to the number of lawsuits that have been filed, but I did see a report today that put the number at 29, and counting. That may just be some kind of world record.

At the heart of the issue is the now infamous sticking gas pedals. (It puts a whole new spin on the expression ‘give it some gas’—and certainly creates a little irony for Toyota’s tagline: moving forward.)

Of course, it’s not really funny, given that hundreds if not thousands or possibly millions of people will be at the very least inconvenienced by the recalls, now totalling some eight million cars—but it will also affect people’s livelihoods, and at worst there are reports of injuries.

In the highly unlikely event you’ve not heard about this issue, you can find more out all the recalls here.

Overdoing the Overdraft thing. Again. Yet another overdraft fees lawsuit was filed this week, this time the accused party is Fifth Third Bank. The lead plaintiffs in this lawsuit allege that they were illegally charged overdraft fees for purchases made on the ATM and debit cards, even when they had enough funds in their accounts to pay Continue reading “Week Adjourned: 2.5.10”