PetroChina Wins Dismissal of Securities Lawsuit in US
(Bloomberg) -- PetroChina Co. won dismissal of a securities-fraud lawsuit by investors who accused the company of failing to disclose corruption that exposed it to government investigations and penalties.
U.S. District Judge Edgardo Ramos in Manhattan dismissed the case, agreeing with China’s largest oil and gas producer that the investors failed to make a plausible argument that PetroChina’s annual reports contained statements that were false or misleading at the time they were made.
While the complaint suggests company officials were suspected by the government of wrongdoing, “plaintiffs never specify when that conduct occurred or how it rendered PetroChina’s public statement false,” the judge said in Monday’s decision.
The investors sued PetroChina and some of its former and current officers in 2013, after officials at the firm, a unit of a state-owned company, became entangled in China’s crackdown on corruption.
According to the lawsuit, company officials were involved in “bribery, political corruption, and undisclosed related party transactions.” The judge said the complaint didn’t tie these allegations to the purported false statements in the company’s 2011 and 2012 annual reports.
The complaint “maintains that the PRC seized over $14.5 billion in assets from Yongkang in connection with its corruption investigation,” the judge said, referring to Zhou Yongkang, the former general manager of China National Petroleum Corp., PetroChina’s parent company.
“However, it does not indicate when this event occurred, nor does it specify when Yongkang undertook any acts of corruption, what they consisted of, or whether they had any connection to PetroChina whatsoever,” Ramos wrote.
The case is In re PetroChina Co. Ltd. Securities Litigation, 13-cv-06180, U.S. District Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Edvard Pettersson in Federal court in Los Angeles at epettersson@bloomberg.net. To contact the editors responsible for this story: Michael Hytha at mhytha@bloomberg.net Peter Blumberg.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Fed Will Be One Of The Leading Oil Price Drivers in 2023
- Turkey Halts Oil Flows to Mediterranean Port After Quake
- Signs of Progress at Freeport LNG
- Next Steps Following US Pacific Wind Leasing Round
- US Oilfield Services Firms Money Policy Could Hinder Industry Growth
- Australian Budget Must Focus On New Gas Supply, Industry Says
- Modi Says India Can Add Oil and Gas While It Chases Green Goal
- New SPR Bill Passes House
- Biden To Support ConocoPhillips Alaska Oil Project, Defying Greens
- Shell CEO Says World 'Desperately In Need' Of Natural Gas
- Energy Services Sector Will Grow To $1 trillion In 2025
- USA Oil and Gas Employs Almost 1 Million in 2022
- Fate Of $8Bn Alaska Oil Project To Be Resolved In Next 30 Days
- Winter Storm Mara Update
- New Discoveries Make 2022 Highest Value Year In Over A Decade
- European Union Debuts First-Ever Carbon Border Tax
- Exxon Beats Earnings Record With With Massive $56 Billion
- Valaris Employee Reported Missing from Rig
- Gasoline and Diesel Prices Expected to Fall
- Is the USA Shale Boom Over?
- New SPR Bill Passes House
- Higher Oil Prices Have Not Led to More Exploration
- Shell Finds Gas In Pensacola High-Impact Well Off UK
- Iran Oil Gushes Into Global Market
- Will Oil Hit $100 Per Barrel in 2023?
- Eni, Chevron Make Significant Gas Discovery Off Egypt
- What Bad Habits Should Oil and Gas Jobseekers Avoid?