(COLUMBUS, Ohio) — The flagship public pension funds of New York and Ohio today announced that they will seek lead plaintiff status on behalf of investors in a securities class action against BP PLC, certain of its officers and directors, and BP America, Inc. 

The lead plaintiff group includes some of the largest and most sophisticated public pension systems in the United States: the New York State Common Retirement Fund; the Ohio Public Employees Retirement System; the State Teachers Retirement System of Ohio; the School Employees Retirement System of Ohio; and the Ohio Police & Fire Pension Fund. The combined funds invest more than $275 billion.

“BP misled investors with false and misleading statements about the safety of its drilling operations and its ability to fix events like the oil spill,” said New York State Comptroller Thomas P. DiNapoli. “The partnership between New York and the Ohio funds seeks to hold BP accountable to investors and provide the best chance for recovering losses due to BP’s apparent misconduct.”

“Institutional investors, and the Ohio Funds in particular, have been greatly harmed by BP’s alleged misconduct. By forming a partnership between New York and Ohio, we aim to compensate investors for what we believe was securities fraud and effect real change in the way BP and other companies do business,” said Ohio Attorney General Richard Cordray. 

The public pension funds assert that, under federal law, they should serve as the lead plaintiff because of their significant losses as a result of the BP’s misconduct. Initial estimates indicate the public funds lost more than $200 million from their transactions in BP common stock and American depositary shares during the class period, currently pleaded as beginning on June 30, 2005 and ending on June 1, 2010. 

The lawsuit alleges that during the class period, BP and related defendants issued materially false and misleading statements regarding the company’s safety protocols and record, as well as its ability to respond to a major oil spill. As a result, BP’s securities traded at artificially inflated prices. On April 20, 2010, an explosion on the offshore drilling unit Deepwater Horizon operated by BP caused a massive oil leak with devastating environmental and economic consequences. Since that time, BP’s stock has fallen approximately 40%, eliminating tens of billions of dollars in the company’s total market capitalization.

The following links are provided for further information: the motion for lead plaintiff; the memorandum in support.

Media Contacts:

for Ohio Attorney General:
Ted Hart: (614) 728-4127
for New York State Comptroller:
Robert Whalen: (518) 474-4015