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The National Law Journal:

Another shareholder lawsuit has been filed against BP PLC over the Gulf of Mexico oil spill, this one potentially involving plaintiffs from all around the world.

The suit, filed Tuesday by New York's Zwerling, Schachter & Zwerling in the Eastern District of Louisiana, seeks to represent not just American investors but also those who bought shares in London-based BP in the United Kingdom and throughout the rest of the world.

Partner Robert Schachter said the effort to represent investors outside the United States is the major difference between his firm's proposed class action and other securities class actions -- at least five more have been filed against BP. He said, "Our numbers show that 39 percent of BP equity holders reside in the U.S. The other 61 percent are outside the country."

New York Shareholder Lawsuit Attorney Robert Schachter in NLJ

Schachter noted that "this is not our first encounter with BP": His firm was lead counsel for the securities holders who sued BP over the massive 2006 pipeline spills in the Prudhoe Bay oil field in Alaska. That case resulted in what Schachter called a significant settlement for the plaintiffs.

In Schachter's current case -- Greenfield v. BP PLC -- plaintiffs allege that investors "were misled by Defendants' representations regarding BP's commitment to safety and operational integrity." Specifically, the suit alleges that BP misled the investing public by claiming it was conducting oil drilling operations in a safe and reliable manner; had the technology to engage in deep water drilling operations; and had the "knowledge, procedures, measures and safeguards in place" to handle risks associated with deep water drilling, including an oil spill response plan.

"Defendants were aware that BP's operations in the Gulf were inadequate and unsafe with respect to the risks associated with those operations, particularly with respect to an oil spill and its consequences," the complaint contends.

Defendants in the lawsuit include BP Chief Executive Officer Tony Hayward; Byron Grote of the United Kingdom, who is chief financial officer of BP; Andy Inglis, also a British citizen and chief executive of exploration and production; Carl-Henrie Svanberg of Sweden, who is chairman of the board; and Antony Burgeons of the Netherlands, another board member.

BP officials declined comment on the lawsuit.

http://www.law.com/jsp/article.jsp?id=1202462595756

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