BP to pay $175 million to settle claims it lied about the size of the 2010 Gulf of Mexico oil spill
BP has agreed to pay $175 million to settle claims by U.S. investors that its managers lied about the size of the 2010 Gulf of Mexico oil spill.
The claim states that BP management lied about the size of the oil spill to prop up its stock price.
Company officials stated that between 1,000 and 5,000 barrels of oil were leaking into the Gulf per day, when internal estimates suggested the true figure was 10 times higher.
Shares later plummeted when the true scale of the disaster was revealed.
The settlement is with investors who purchased BP’s U.S.-listed shares in the aftermath of the rig explosion. They claimed BP misled them about the extent of the spill and sued the company in Houston federal court.
The disaster was the worst offshore oil disaster in U.S. history, killing 11 workers and spewing millions of barrels of oil onto the shorelines of several states for nearly three months.