Shares in BP stock have fallen today as Reuters is reporting that BP executives could be facing manslaughter chargesin the deaths of eleven workers in the Deepwater Horizon blowout. Much higher fines for BP could also be attached if the charges stick.
U.S. prosecutors are considering whether to pursue manslaughter charges against BP managers for decisions made before the explosion on the rig that killed 11 workers and caused the biggest offshore spill in U.S. history, a report from Bloomberg said, citing people familiar with the matter.
A U.S. official said the Department of Justice is investigating possible criminal charges related to the deaths of the workers. These charges could include manslaughter, but the official declined to confirm this was under consideration.
BP has admitted mistakes in the run-up to the rig blast but has denied accusations it was "grossly negligent", a charge that could add tens of billions to the final bill it pays for the disaster.
"A manslaughter charge makes a charge of gross negligence more likely," one dealer said.
If found grossly negligent, the fines could increase from $5 billion to $20 billion. In addition, it might make it harder for BP to force its partners (Cameron, Transocean and Halliburton) to ante up for their share of the cleanup, now hovering at around $42 billion.
Legal claims from plaintiffs could then skyrocket.
U.S. investigators also are examining statements made by leaders of the companies involved in the spill -- including former BP Chief Executive Officer Tony Hayward -- during congressional hearings last year to determine whether their testimony was at odds with what they knew, one of the people said. All three spoke on condition they not be named because they weren’t authorized to discuss the case publicly.
Charging individuals would be significant to environmental- safety cases because it might change behavior, said Jane Barrett, a law professor at the University of Maryland.
“They typically don’t prosecute employees of large corporations,” said Barrett, who spent 20 years prosecuting environmental crimes at the federal and state levels. “You’ve got to prosecute the individuals in order to maximize, and not lose, the deterrent effect.”
The Justice Department in June said it opened criminal and civil investigations into the spill, which began after an April 20 explosion aboard the Deepwater Horizon rig that London-based BP leased from Transocean Ltd., of Vernier, Switzerland. The department filed a civil suit against BP in December and hasn’t filed criminal charges. It’s continuing to investigate.
Authorities are examining actions by BP managers who worked both on the rig and onshore to determine whether they should be charged in connection with the workers’ deaths, according to the people. Prosecutors have been looking at charges of involuntary manslaughter or seaman’s manslaughter, which carries a more serious penalty of up to 10 years.
Laura Sweeney, a Justice Department spokeswoman, wouldn’t discuss the details of the investigation.
A downgrade from a brokerage also forced BP shares downward.
The brokerage entity Collins Stewart cut BP to "sell" from "hold", partly due to the spat between the company and its oligarch partners in its Russian joint venture TNK-BP, traders said.
BP shares closed down 2.2 percent, against a 0.3 percent drop in the STOXX Europe 600 Oil and Gas index.
BP declined to comment.