Transocean Defeats Shareholder Appeal over Gulf Spill

Posted by Joseph Keefe
Thursday, March 17, 2016

Transocean Ltd on Thursday won the dismissal of an appeal by shareholders accusing the owner of the doomed Deepwater Horizon drilling rig of deceiving them about its safety practices prior to the 2010 Gulf of Mexico oil spill.

The 2nd U.S. Circuit Court of Appeals in Manhattan said the lead plaintiff waited two months too long to sue over alleged misstatements in an Oct. 2, 2007, proxy statement for the offshore drilling company's merger with GlobalSantaFe Corp.

Shares of Transocean rose 3 percent after the decision was issued.

Geoffrey Johnson, a lawyer for the plaintiffs, declined to comment. Transocean and its lawyers did not immediately respond to requests for comment.

Former GlobalSantaFe shareholders, who received Transocean shares in the merger, said the proxy statement contained false and misleading statements about the company's compliance with environmental laws.

Led by the DeKalb County Pension Fund in Decatur, Georgia, the shareholders sought to hold the Swiss company liable for their losses after the April 20, 2010, explosion of the Deepwater Horizon and blowout of BP Plc's Macondo well.

The disaster caused Transocean shares to lose more than half their value within seven weeks.

Writing for the appeals court, however, Circuit Judge José Cabranes said the Georgia fund did not join the case until Dec. 3, 2010, missing the three-year deadline to sue over the proxy statement.

He said it did not matter that the lawsuit was originally filed before the deadline, but by another shareholder that was later dismissed from the case because it lacked standing.

The plaintiff "through minimal diligence" could have saved its case by getting involved sooner and offered no justification for its lateness, Cabranes wrote.

The Georgia fund had argued that the three-year clock began to tick when the Deepwater Horizon exploded, bring Transocean's prior misstatements to light.

Thursday's decision upheld a March 2014 dismissal of the lawsuit by U.S. District Judge Lorna Schofield in Manhattan.

Transocean agreed in January 2013 to pay $1.4 billion in civil and criminal fines and penalties to settle U.S. government claims over the spill.

BP has incurred $55.5 billion of costs for the spill. It faces its own U.S. shareholder lawsuit in Houston federal court.

In early afternoon trading, Transocean's American depositary receipts were up 3 percent at $11.56. Its shares in Switzerland were up 3 percent at 11.11 Swiss francs.

The case is DeKalb County Pension Fund v. Transocean Ltd et al, 2nd U.S. Circuit Court of Appeals, No. 14-0894.


Reporting by Jonathan Stempel

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Swiber Applies for Judicial Management Instead of Liquidation

Singapore oilfield services company Swiber Holdings Ltd said on Friday it has applied to place itself under judicial management instead of liquidation.   Swiber

US Oil Drillers Add Rigs for 5th Week in a Row

U.S. drillers this week added oil rigs for a fifth consecutive week, Baker Hughes Inc said on Friday, but the oilfield services provider and some analysts cast

Daewoo Shipbuilding: $1.4 bln order Cancelled

Cancelled order part of Statoil's Bressay project. South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd on Friday said a 1.58 trillion won ($1.41 billion)

Environmental

Insights: Kunkel Weighs in on Propulsion Technology

LNG? Methanol as fuel? Hybrid systems? Tier 4? Reducing noise? Cutting emissions without crushing fuel economy? Marine News readers have questions and Bob Kunkel has answers.

Safety and Preparation on the Brownwater Radar

Weather Channel Forecasters are predicting a “near-average” hurricane season for 2016, but warn that an average season does not mean businesses and residents shouldn’t prepare for the worst.

Oil Spills from VLOC in Strait of Malacca

Berge Bulk Maritime confirms that an its VLOC (Very Large Ore Carrier)  “BERGE BUREYA” – (IMO/LR # 9297539) operated vessel was involved in an oil spill incident

Energy

First US LNG Shipment Goes to China

The first liquefied natural gas vessel from the lower 48 U.S. states is on its way to China, according to a Reuters interactive map on Friday, the latest sign that

Swiber Applies for Judicial Management Instead of Liquidation

Singapore oilfield services company Swiber Holdings Ltd said on Friday it has applied to place itself under judicial management instead of liquidation.   Swiber

US Oil Drillers Add Rigs for 5th Week in a Row

U.S. drillers this week added oil rigs for a fifth consecutive week, Baker Hughes Inc said on Friday, but the oilfield services provider and some analysts cast

Casualties

Ship Hits Panama Canal

The Panama Canal authority  (ACP) says a Chinese container ship’s damaging scrape with the canal’s new wider locks was caused by bad weather, Reuter quotes  ACP's  administrator, Jorge Quijano.

Alaska Juris Sinks, 46 People Rescued

The Fishing Company of Alaska, based in Renton, owns the  238-foot  Alaska Juris that started sinking in the Bering Sea shortly before noon on Tuesday, says a report in Seattle Times.

Sunken Barge Impedes Waterway Traffic Near Galveston

A barge sank east of the Galveston Causeway railroad bridge Tuesday, causing the U.S. Coast Guard to issue a safety zone and temporarily restrict traffic on the Gulf Intracoastal Waterway.

Government Update

Libyan Oil Exports to Resume from Closed Ports

Libyan oil exports from closed ports should resume in no more than one to two weeks after a deal was signed between the government and an armed brigade controlling the terminals,

China, Russia Navies to hold S. China Sea Drills

China and Russia will hold "routine" naval drills in the South China Sea in September, China's defence ministry spokesman Yang Yujun told a news conference on Thursday.

India Govt, Cochin Shipyard Pact on FY17 Growth Targets

Cochin Shipyard Limited (CSL) has entered into a Memorandum of Understanding (MoU)  with the government of India for the ongoing fiscal under which targets agreed

Offshore Energy

Swiber Applies for Judicial Management Instead of Liquidation

Singapore oilfield services company Swiber Holdings Ltd said on Friday it has applied to place itself under judicial management instead of liquidation.   Swiber

US Oil Drillers Add Rigs for 5th Week in a Row

U.S. drillers this week added oil rigs for a fifth consecutive week, Baker Hughes Inc said on Friday, but the oilfield services provider and some analysts cast

Damen PSV for Wilson Sons Ultratug Offshore

Wilson Sons Ultratug Offshore, a joint venture between Wilson Sons and the Chilean maritime services provider Ultramar, has taken delivery of a Damen PSV 5000.

 
 
Maritime Security Maritime Standards Naval Architecture Offshore Oil Pipelines Pod Propulsion Ship Electronics Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1003 sec (10 req/sec)