Anadarko Petroleum Corporation Securities Litigation
|Court:||United States District Court, Southern District of Texas|
|Case Number:||1:10 CIV 4905|
|Judge:||Hon. Keith P. Ellison|
|Class Period:||June 12, 2009 through June 9, 2010|
|Case Contacts:||John C. Browne, Jeremy P. Robinson, Brett Van Benthysen|
Securities fraud class action filed on behalf of a class of persons and entities who purchased or acquired the securities of Anadarko Petroleum Corporation ("Anadarko") between June 12, 2009 and June 9, 2010 (the "Class Period").
This action brings claims for violations of the federal securities laws by Anadarko, its Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer. The Complaint alleges that Defendants materially misled investors about the deepwater Macondo well site located in the Gulf of Mexico—a joint venture that Anadarko entered into with BP, p.l.c. ("BP") and MOEX Offshore 2007 LLC. Significantly, Defendants failed to disclose to investors that the Macondo well site lacked an effective Exploration and Oil Spill Response Plan; that BP, which operated and managed the well, routinely implemented drilling procedures that unconscionably placed cost-cutting measures above safety; that the Company lacked adequate systems of internal, operational or financial controls to maintain insurance reserves to meet the known and foreseeable risks of deepwater drilling; and that the Defendants lacked any reasonable basis to claim that Anadarko could achieve its projected guidance. After the catastrophic explosion and oil spill at the Macondo well on April 20, 2010, Anadarko further mislead investors as to the extent of Anadarko’s involvement in the well.
Defendants' pervasive misconduct served to artificially inflate the price of Anadarko securities during the Class Period. Upon revelation of the truth about the Macondo site following the explosion, the price of Anadarko securities plummeted, causing the Class to incur significant losses.
On November 16, 2010, the Honorable Paul G. Gardephe entered an order appointing the Pension Trust Fund for Operating Engineers and Employees' Retirement System of the Government of the Virgin Islands as Lead Plaintiffs and approving their selection of BLB&G as Lead Counsel for the Class. On March 19, 2012, Judge Gardephe granted Lead Plaintiffs’ transfer motion and the action is now properly venued in the Southern District of Texas and assigned to the Honorable Keith P. Ellison. Defendants moved to dismiss, on July 15, 2013, Judge Ellison issued an opinion that denied in part and granted in part Defendants’ motion to dismiss. In particular, Judge Ellison sustained Lead Plaintiffs’ allegation that Anadarko’s Senior Vice President of Worldwide Exploration falsely represented that it was not involved in “looking at the detail, well design and procedures” at the Macondo well.