Friday, August 13, 2010

BP (NYSE:BP), Transocean (NYSE:RIG) Sued by Alabama

The attorney general of Alabama announced he's suing BP (NYSE:BP) and Transocean (NYSE:RIG) over the Gulf oil spill, saying they've been saying one thing and doing another.

Attorney General Troy King said in a statement Friday, "their history of saying one thing and doing another, and now, new information that they have been secretly working to gain a legal advantage, can only further damage our people."

Two lawsuits were filed on Thursday in federal court in Montgomery, one for Transocean and the other for BP.

In the lawsuit, it was asserted the "defendants were slow and incompetent, if not dishonest, in their announcements and warnings to the state of Alabama and its citizens and businesses." That was a reference to the original estimate of the oil flow of 1,000 barrels a day, which ended up in the last estimate being as high as 60,000 barrels released into the Gulf a day.

The lawsuit also cited the use of Corexit to disperse the oil, which they're seeking damages for. They could have trouble there, as government agencies have said it's relatively harmless, although that's disputed by others.

Governor Bob Riley has opposed the lawsuit, saying he had hoped to work with BP on an out-of-court settlement, which does make more sense in that it would pay for things that are desperately needed now, rather than possibly litigate for a long period of time, without a guarantee of winning the case.

1 comment:

KHC831 said...

everyone wants a piece of BP nowadays