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Compliance July 2, 2010
Scott+Scott Announces BP 401(k) Plan Investigation
Another law firm has launched an investigation into possible violations of the Employee Retirement Income Security Act by BP PLC and fiduciaries of the its Employee Savings Plan.
Reported by PLANADVISER Staff
Specifically, Scott+Scott is investigating whether the fiduciaries for the BP 401(k) plan breached their fiduciary duties by continuing to offer and invest BP stock in the 401(k) plan when it was no longer prudent to do so.
The firm’s announcement noted that following BP’s Deepwater Horizon drilling rig explosion, allegations emerged that BP cut costs and corners at the expense of personal and environmental safety. The consequences of this behavior may have negatively impacted the retirement savings of BP’s 401(k) participants.
The firm said it is investigating whether the fiduciaries of the 401(k) plan knew or should have known of BP’s cost cutting and safety record, including the conduct that led up to the Deepwater Horizon explosion.
More information is at http://www.scott-scott.com/.
Since the oil rig explosion, a number of firms have announced investigations into the 401(k) plan (see Lanier Law Firm Investigating BP 401(k)), and two participant lawsuits have already been filed (see FL Woman Sues BP Over 401(k) Stock Losses, Ex-Employee Sues BP Over Plan Losses).