BP, the company responsible for the largest oil spill in history, is being sued for common law fraud, negligent misrepresentation and statutory fraud by investors. The investors are claiming that BP’s CEO misled them on the extremity of the spill, BP’s level of responsibility and its safely regulations. From 2007 to 2010, BP released legal documents that expressed its devotion to safety, and it was these statements that minimized the decline in stock prices. Yet site investigations found that it was safety failings that led to the spill and that BP lacked any tools for dealing with such disasters but continued to operate. Honestly, stock prices would’ve gone down either way. I believe that if BP had been honest the stocks would’ve plummeted, but the company’s integrity and credibility would remain intact. If their reputation as an honest business remained then the possibility of recovery in the future would be more assured. Consider Maple Leaf Foods and how they responded to their disaster by immediately taking full responsibility of the situation and how they are recovering. After how BP responded by lying to investors and destroying their credibility it is doubtful that they will ever recover.

Additional information here.

U.S. Coast Guard. Deepwater Horizon. <http://www.thedailygreen.com/environmental-news/latest/gulf-of-mexico-oil-spill >