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Compliance May 25, 2010
Law Firm Investigates Transocean’s Handling of Company Stock
Law Offices of Howard G. Smith is investigating potential claims against Transocean Ltd. concerning whether the company’s 401(k) savings plans imprudently invested in Transocean stock.
Reported by PLANADVISER Staff
The law firm announced it is investigating whether the plans’ administrators breached their fiduciary duties in violation of the Employee Retirement Income Security Act (ERISA). The investigation concerns public statements issued by Transocean between August 5, 2009, and May 7.
According to the firm’s announcement, a pending shareholder lawsuit claims that during that period Transocean and certain of its executive officers failed to disclose and/or misrepresented the effectiveness of Transocean’s safety protocols, recurring problems with blowout preventers (BOP)—including BOPs installed on the Deepwater Horizon mobile drilling platform that is currently at the center of a massive oil spill in the Gulf of Mexico—and the company’s operating and safety record.
The law firm said it is investigating whether Transocean and other administrators of the plan failed to prudently and loyally manage the plans’ investments in Transocean stock by continuing to offer company stock when the stock was no longer a prudent investment.