BP's $7.8 billion settlement just the start

The just-announced settlement between BP and the class action plaintiffs in the Gulf oil spill is just overture to the real court battle that will take place. The plaintiffs are no doubt deserving, and will finally receive compensation. But in terms of money, it is a sideshow. Stephen Mufson of the Washington Post reports: BP will pay an estimated $7.8 billion to settle a lawsuit over the massive 2010 Gulf of Mexico oil spill with attorneys representing thousands of individual plaintiffs and businesses on the eve of a major trial in a New Orleans federal court, the company said Friday night. BP said it expects to pay the settlement from the money remaining in a $20 billion escrow account, or trust fund, it set up during the spill to resolve individual and business claims without going to court. The settlement amount includes $2.3 billion to help resolve economic loss claims related to the gulf seafood industry, the company said. The rest of the...(Read Full Post)