The Deepwater Horizon settlement agreement is in turmoil, with BP attempting to stop the payments and saying money shouldn’t have gone to an adult escort service, a global nuclear consultant and others that haven’t proved the monster 2010 oil spill in the Gulf of Mexico cost them business.
BP is waging an aggressive campaign in the courts and the news media against the settlement it signed two years ago. The company agreed to the settlement under pressure as claims mounted from the oil rig explosion that killed 11 workers, led to the biggest environmental disaster in U.S. history and did major economic damage to businesses in the region.
When it signed the settlement, BP expected a cost of about $7.8 billion. But it soon became clear that payouts would swell. Now BP is in court arguing that the claims administrator and the judge overseeing the settlement are misinterpreting the terms of the deal. The company is trying to convince a federal appeals court to block payments to companies that can’t prove the spill caused their losses.
“BP has been ordered to pay hundreds of millions of dollars – soon likely to be billions – of fictitious and inflated losses,” the company argues.