Lawyers for workers filing a class action lawsuit against BP (NYSE:BP) over their retirement savings plans and the losses incurred because of the Gulf oil spill had requested for the case to be tried in Chicago, but the Judicial Panel on Multidistrict Litigation ruled the case will be tried in Houston, Texas.
The Panel said, “Certainly, there are differences between the securities actions and the ERISA actions. Notwithstanding those differences, there is significant overlap between the ERISA and securities actions warranting their concentration in a single docket.”
The retirement plan is managed and administered in Chicago, the reason for the request.
Much of the lawsuits are centered around the pre-spill safety record of BP, and what is being asserted is it made the company a safety risk to investors.
Over $1 billion in value from the retirement plan was lost, according to the complaint.
It isn't clear at this time how the rebound in the share price of BP will affect the lawsuit, as shares have gained a lot back since it bottomed out.
The legal question at hand is whether or not the stock of BP was a good investment in the time period the class action is based upon.
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