Corporate & Securities Law

BP Plc settles US derivative action

By Werner R. Kranenburg

BP Plc (LSE, NYSE: BP) has settled the derivative litigation pending against it. (3AN-06-11929CI, Unite Here National Retirement Fund et al vs. The Lord John Browne of Madingley et al; See WV&Z’s archive for previous posts). The notice of and terms of the settlement and more documents relating to the action can be found in BP’s Corporate Governance section and Lead Counsel Coughlin Stoia Geller Rudman & Robbins LLP’s settled cases section.

The action has not satisfactorily established that English corporations can be sued derivately in a US Court under the English Companies Act 2006, which allows for derivative claims. Instead, the Court had denied BP’s motion to dismiss on the grounds that Alaska law is applicable and that the case should not be dismissed on the basis of forum non conveniens.

The Court is to hold the settlement fairness hearing on 7 May 2008 at 2pm. The deadline to object to the settlement is 23 April. (Subscribe to WV&Z here.)

Full post as published by With Vigour and Zeal on April 02, 2008 (boomark / email).