Appeals court reinstates BP shareholders' lawsuit

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Associated Press

Posted on February 13, 2014 at 7:34 PM

Updated Friday, Feb 14 at 6:01 AM

ANCHORAGE, Alaska (AP) — A federal appeals court has reinstated most of a shareholders lawsuit brought against BP Alaska after two North Slope spills in 2006.

The 9th U.S. Circuit Court of Appeals on Thursday reversed a lower court on several claims.

Shareholders claim BP management knowingly or recklessly made misleading statements about the conditions of the company's pipelines and its maintenance and leak detection program after the first spill of 200,000 gallons in 2006.

Shareholders claim BP's share price declined 4 percent after the second spill and a subsequent field shutdown for maintenance.

The appeals court says shareholders made adequate arguments about the falsity of some statements BP made following the spills and in a company report.

BP says it hasn't reviewed the decision and has no immediate comment.

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