Plains settles class-action suits

Plains All American Pipeline LP and Plains Resources Inc. have agreed to pay $29.5 million to settle class-action securities suits filed against them regarding an unauthorized trading loss disclosed in November 1999. Company officials denied the claims in the lawsuits and said they were settling to eliminate the burden and expense of further litigation.


Plains All American Pipeline LP and Plains Resources Inc. have agreed to pay $29.5 million to settle class-action securities suits filed against them regarding an unauthorized trading loss disclosed in November 1999. Company officials denied the claims in the lawsuits and said they were settling to eliminate the burden and expense of further litigation.

Included in the settlement are individuals who purchased common limited partnership units of Plains All American Pipeline from Nov. 17, 1998, through Nov. 26, 1999, and those who purchased common stock and call options of Plains Resources Inc. from Oct. 19, 1998, through Nov. 26, 1999.

A subsidiary of Plains Resources Inc. owns a 54% interest in the partnership and serves as its general partner. Both organizations are based in Houston.

The amounts to be paid under the agreement total about $29.5 million, plus interest earned through the date the payment is remitted to plaintiffs' representatives. Company officials estimated that the settlement and associated expenses will reduce current quarter net income by up to $0.14/unit for the partnership and $0.06-0.17/share for the company.

The settlement is subject to a number of conditions including US District Court approval. Company officials said the settlement covers all class action securities claims made following the announcement of an unauthorized trading loss in November 1999.

The agreement does not resolve two outstanding suits filed in Delaware Chancery Court and in Texas. Those lawsuits accuse Plains All American's general partner, its directors, and certain officers of breaching their fiduciary duties to investors.

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