BP share price: Company starts medical claims payments over Gulf spill

on Jul 1, 2014
Updated: Apr 9, 2020

iNVEZZ.com, Tuesday, July 1: BP Plc (LON:BP) has started paying medical claims related to the 2010 Gulf of Mexico oil spill, USA Today has reported.

Last week, the company asked a US court to order a number of businesses to repay compensation awards, arguing that they were unjustly inflated.
BP’s share price has added about 0.3 percent in London so far today.
**Medical claims payments**
USA Today reported today that BP had paid the first 100 of about 10,000 medical claims filed by Gulf Coast residents and cleanup workers affected by the Gulf of Mexico oil spill.

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“There’s about 800 cases already ready for payment and of those, approximately 100 have cleared and we’re working every day to clear the balance,” said Matt Garretson, the administrator appointed by US District Judge Carl Barbier to process and pay the medical claims, as quoted by USA Today.
The payments range from about $900 with a declaration and proof that the claimant worked or lived on oiled coastline, to more than $60,000 for well-documented chronic injuries which required hospitalisation.

Garretson, however, added that the rules of the settlement were specific and clear enough to avoid additional appeals or the kind of court challenges which have marked the economic settlement process.
**BP looking to recoup some payments**
On Friday, BP filed papers with the US District Court in New Orleans to require businesses to make restitution plus interest for excess payments. The company said in the filing that the Deepwater Horizon Economic Claims Centre had “made overpayments totalling hundreds of millions of dollars to certain claimants”. The company also requested an injunction to stop the businesses from spending the excess amounts.

BP has long argued that the economic claims administrator Patrick Juneau has misinterpreted the settlement, allowing businesses which suffered no losses as a result of the disaster to receive compensation.
BP’s latest court filing came after last month the US Supreme Court said that the company must continue to pay claims while pursuing legal challenges to the payouts. (BP share price: Supreme Court rejects call to keep block on payouts)

**Analysts on BP**
As of June 27, the consensus forecast amongst 48 polled investment analysts covering BP for the Financial Times advises that the company will outperform the market.
Analyst Ratings Network reports that he FTSE 100 energy group currently has a consensus ‘hold’ rating and an average price target of 496.15p.
**As of 10:06 BST, buy BP shares at 516.60p.**
**As of 10:06 BST, sell BP shares at 516.50p.**


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