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September 25, 2014

Judge Rules Questionable Gulf Oil Spill Payouts Won’t Be Returned to BP

Despite what BP argues is a “flawed funding formula” that has enabled upwards of 800 businesses to “overestimate their spill-related claims,” a federal judge has ruled that these businesses will not have to return the questionable 2010 Gulf oil spill settlements to BP.

This Faces of Lawsuit Abuse video posted earlier this year detailed some questionable payouts, including a $173,000 payout to an adult escort service that BP said was filed with unsigned and undated financial records and a $23.1 million payout to an alligator farm that earned profits the year of the spill after two previous years of losses.

As ABC News reports, BP has also detailed a number of other questionable payouts.

“One construction company hundreds of miles from the coast received $13.2 million, but deserved $4.8 million at most, BP said,” reports ABC News. “Another company selling ‘animals and animal skins’ was overpaid about $14 million, and about 50 others shouldn’t have been paid at all, the company said.”

In all, according to BP, “about 150 claimants should return a total of $185 million, and overpayments to the rest haven’t been calculated.”

Read the full story here.

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