BP Says Ruling Could Imperil $7.8B Oil Spill Settlement

Law360, Los Angeles (May 6, 2013, 5:20 PM EDT) -- BP PLC on Friday told the Fifth Circuit that a Louisiana federal judge's ruling has led to "absurd and egregiously inflated" payouts to thousands of Gulf of Mexico businesses claiming losses from the Deepwater Horizon disaster, potentially invalidating the $7.8 billion settlement under federal rules.

A district court in March injected arbitrariness into the settlement's award calculation process by ruling that businesses didn't have to match their claimed expenses with corresponding revenues, thus creating an unlawfully "irrational and inequitable" agreement, BP alleged. If a court is...
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