BP's Gulf Headache Gets Worse

Morningstar's latest analysis of the Department of Justice accusations made against BP and Transocean

Stephen Simko, CFA 5 September, 2012 | 5:01PM
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The US Department of Justice issued a scathing memo against BP (BP.) on Wednesday, which once again included the accusation that the firm was grossly negligent in its well operations in the Gulf of Mexico and fostered "a culture of corporate recklessness." Court pleadings in February also indicated that the US government intended to pursue gross negligence claims against BP and Transocean (RIG).

The timing of the latest memo indicates that the US government may be growing frustrated about its inability to reach a settlement with the parties and may be gearing up for a trial, which is now set for January 2013.

Shares in BP reacted to the news by falling 3% on Wednesday.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BP PLC313.65 GBX1.70Rating
Transocean Ltd4.02 USD7.49

About Author

Stephen Simko, CFA  is a senior stock analyst at Morningstar.

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