The law office of Brodsky & Smith, LLC said in a press release that it is investigating BP Corporation North America, Inc. investment of plan participants and beneficiaries assets in company stock or BP American Depository shares. According to that press release, “The investigation concerns whether administrators breached their fiduciary duties and violated the Employee Retirement Income Security Act of 1974 (“ERISA”) by investing and/or continuing to invest assets in company stock when it was not a prudent investment for participants’ retirement savings”.
The investigation concerns improper behavior that harmed current and former employees that invested in the 401(k) plan; specifically, according to the press release, “administrators failed to disclose the true risks of the Deepwater Horizon rig to participants in the 401(K) plan. As a result, the plan’s investment of nearly 2 billion in Company stock or depository shares has fallen approximately 50% in value”.
Stull, Stull & Brody has launched a similar investigation (see Another Law Firm Investigating BP 401(k) Plan), as has Milburg LLP (see Law Firm Probing Potential BP ERISA Violations). An ex-employee of BP Plc has sued the company over losses to BP’s retirement plan caused by the oil rig explosion and oil spill in the Gulf of Mexico (see Ex-Employee Sues BP Over Plan Losses).
As for the Brodsky & Smith announcement, they note that “If you held BP stock in an individual account under any of the Company’s 401(k) plans and wish to discuss the legal ramifications of the administrator’s investment in Company stock, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions”.