TORONTO, March 7, 2014 /CNW/ - Morganti Legal, P.C., a shareholder rights law firm, with offices in Canada and in the United States, responds to questions from Canadian-based institutional investors about the ongoing class action proceeding in Canada concerning BP, p.l.c. (XETRA: BPE5, LSE:BP.L, and NYSE:BP.N).
The BP shareholder litigation arises from the April 20, 2010, explosion of BP's Deepwater Horizon in the Gulf of Mexico. It is alleged that BP misrepresented material facts related to the company's safety procedures, among other things, in its core financial documents and/or filings with the United States Securities & Exchange Commission ("SEC") resulting in a staggering market cap loss of more than $67 billion CAD, harming BP shareholders. Investors that purchased BP's securities at various specified times prior to the explosion may have an opportunity to recover their financial losses.
On November 15, 2012, BP agreed to plead guilty to felony charges brought by the United States Department of Justice and pay $4.5 B in penalties, including $1.26 B in criminal fines, stemming from the Deepwater Horizon disaster, as reflected in the matter of Securities & Exchange Commission v. BP p.l.c., 12-cv-2774 (E.D. La.).
Canadian-based shareholders should consider some important facts:
Who are the possible beneficiaries of the Canadian Litigation?
All shareholders in Canada that purchased BP's securities listed on the London (LSE), New York (NYSE), Toronto (TSX) or Frankfurt Stock Exchanges (FWB) between May 9, 2007 and May 28, 2010.
How does the Canadian Litigation differ from the ongoing U.S. Litigation?
First, the Canadian Litigation includes BP's securities purchased on the London, New York, Toronto or Frankfurt Stock Exchanges. The U.S. Litigation is limited to securities purchased on the New York Stock Exchange. Second, the Canadian Litigation includes investors who purchased BP's securities on the New York Stock Exchange between May 9, 2007 and November 8, 2007, and held at least one or more of their shares until after April 20, 2010.
Is it Possible for Canadian Investors to Calculate potential monetary damages as a result of BP's alleged misconduct?
Section 138.5(1) of the Ontario Securities Act provides a formula for calculating damages. Investors who purchased BP's shares during the proposed Canadian Class Period and disposed of their shares on or before the tenth trading day after the public correction, the measure of damages is calculated as the difference between (a) the average price paid for the securities, including commissions; and (b) the price received upon disposition.
Do possible beneficiaries of the Canadian Litigation need to do anything at this time to protect their ability to participate in the Canadian Litigation?
No. All Canadian-based entities that purchased BP's securities listed on the London, New York, Toronto and Frankfurt Stock Exchanges between May 9, 2007 and May 28, 2010, are included in the Canadian Litigation. We do, however, encourage Canadian investors to contact Morganti Legal, P.C., to ensure that their financial interests are protected and that updates may be provided about the Canadian, US, and European litigation.
About Morganti Legal, P.C.
The chair of Morganti Legal, P.C., Andrew Morganti, is licensed to practice law in the Province of Ontario, Canada as well as in the U.S. capital, the District of Columbia and in the State of Michigan. Morganti Legal, P.C. has offices in Toronto, Canada and in Michigan. Mr. Morganti has represented investors for fifteen years and is licensed to provide legal opinions about the Ontario Securities Act and the U.S. federal securities laws.
SOURCE: Morganti Legal, P.C.
For further information:
Morganti Legal, P.C.
(416) 800-2171 Ext 101