HFK and Wolf Haldenstein announce Proposed Settlement in Inter-Marketing Group USA, Inc. v. PAA GP LLC and Plains All American Pipeline, L.P., C.A. No. 2017-0030-PAF
Wolf Haldenstein Adler Freeman & Herz LLP and Halloran Farkas + Kittila LLP is pleased to announce the settlement of the derivative litigation in Inter-Marketing Group USA, Inc. v. PAA GP LLC, No. 2017-0030-PAF in the Delaware Court of Chancery. On May 19, 2015, Plains experienced a crude oil release from its Las Flores to Gaviota Pipeline (Line 901), a 10-mile underground pipeline in Santa Barbara County, California. The spill resulted in severe damage to the local environment and wildlife and eventually the company would be convicted of eight misdemeanors and a felony in California. In this settlement, Plains’s General Partner, PAA GP LLC, has agreed to substantial therapeutic relief to strengthen the Company’s safety culture and regulatory compliance, including the (1) maintenance of a Health, Safety, Environmental and Sustainability (“HSES”) Committee in its Board of Directors for at least six years, (2) establishing a mechanism for employees to submit anonymous messages to the HSES committee, and (3) the HSES having authority to investigate such submissions as well as retain outside counsel and subject matter experts.
More information can be found in the Stipulation and Agreement of Settlement, Compromise, and Release, dated April 27, 2022 and Notice of Pendency of Derivative Action, Proposed Settlement of Derivative Action, Settlement Hearing, and Right to Appear, as well as in a Form 8-K issued by Plains All American Pipeline, L.P.