Halliburton

Halliburton Co. (HAL.N) has agreed to settle a securities fraud class action case for $100M. The case, brought in Dallas, accuses the oil field services providers of misrepresenting its possible liability in asbestos lawsuits and the benefits it expected from certain construction contracts, as well as a merger from nearly twenty years ago.

Lead plaintiff Erica P. John Fund Inc. filed the complaint in 2002 after the US Securities and Exchange Commission began investigating Halliburton’s accounting for revenue made from certain construction projects. The securities case accused the company of misleading investors when it purportedly understated its liabilities in the asbestos cases, overstated revenue from construction, and inflated the benefits of the Halliburton-Dresser Industries merger.

Former US Vice President Dick Cheney, who was chief executive of the company during the period at issue, settled the regulator’s charges against him for $7.5M in 2004. However, the lawsuit against the company has gone on for years.

Halliburton Co. (HAL) has consented to pay $1.1 billion to settle most of the lawsuits related to the massive 2010 oil spill in the Gulf of Mexico. A court must still approve the deal, which covers claims for punitive damages that were filed by the commercial fishing industry and others impacted by the spill.

BP P.c (BP) Spill victims accused Halliburton, which is based in Houston, Texas, of defective cementing on the Macondo well prior to the spill. Halliburton blamed BP Plc., which was operating the rig. This is Halliburton’s most significant payout related to the spill to date.

The oil spill occurred when there was an explosion on the Deepwater Horizon drilling rig. Eleven workers died and millions of oil barrels poured out into the gulf. Hundreds of lawsuits against Halliburton, BP, and Transocean Ltd, (RIG) which owned the rig ,soon followed.

Articles Tagged with Halliburton

Halliburton to Pay $100M to Settle Securities Fraud Class Action Lawsuit Originally Brought in Dallas

Texas-Based Halliburton Settles Oil Spill Lawsuit for $1.1B