On Monday, as reported by Bloomberg, a lawsuit has been filed against BP plc by Mike Dewine an attorney General at Ohio and Underground Storage Tank Compensation Board. The state legal representatives accused the company of taking wrongfully an amount of $33 million from the compensation fund and insurers to get rid of the leaks caused by the company’s storage tanks situated at various different gas stations.
The British oil major along with Amoco Oil and Atlantic Richfield Co, Standard Oil of Ohio, & Standard oil and affiliates are also involved in the lawsuit filed by the state board. Mr. Dewine mentioning the British oil giant said, it was same as every other company and the company must stick to the laws set by state. He further said, BP should be ready to face the music if it did not do anything about its misconduct.
According to Bloomberg, British Petroleum acquisition has provided the companies a way in to various service stations and underground tanks for storage.
According to Mr. Dewine the insurers fund and state board were built to guard the owners of the tanks with no accidental insurance, and the British oil company has misused the situation for its own purpose. Ohio attorney general said the company put out of sight its insurance and applied for reimbursement of the cleanup cost from the state board. The compensation board told that the company claim of $22 billion is still in the pipeline.
The England based Oil Company, who is already finding it difficult to maintain its liquidity; this is considered as a major setback for them. With declining crude oil prices from past 7 months to almost 50% and BP is still stuck in the oil spill lawsuit, which is still in progress and US Federal court is expected to impose a penalty of $13.7 billion on London oil giant.
The company has now considered value program, based on quality instead of quantity. It has reduced its capital expenditures along with a substantial ct in its workforce. Bearing in mind all these sacrifices, these lawsuits will hurt the company’s reputation in front of its shareholders.
As reported by Wall Street Journal, Jason Ryan a Spokesperson at BP plc. said the company will face the lawsuit and its actions will be based on good faith.
BP plc. Stock was trading at $41.74 at market close on Tuesday after it went up by 1.07%.
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