Anadarko settles with DOJ over fraud allegations

Will pay $5.15 billion to stop further litigation from Tronox Inc.

In the largest environmental settlement ever won by the U.S. government, Anadarko Petroleum corp. has agreed to pay the Department of Justice (DOJ) $5.15 billion to settle fraud claims stemming from its 2006 acquisition of Kerr-Mcgee Corp.

According to the Wall Street Journal, the lawsuit alleged that just prior to being bought by Anadarko, Kerr-McGee intentionally shifted its chemical operation to subsidiary, Tronox Inc. In doing so, plaintiffs argue the company unfairly dumped liabilities on to Tronox, making it more attractive to buyers and allowing prospective deals to proceed without investigation into some questionable practices.

Executive Editor

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Chris DiMarco

Chris DiMarco, Executive Editor of InsideCounsel magazine, has a background in multimedia production with previous involvement in projects in which he developed and created content...

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