While BP was aware of the extensive payout sums it would be facing under the terms of the Deepwater Horizon Court-Supervised Settlement Program, the company says it underestimated the average claim amount of valid claims it is receiving.
BP originally estimated the total cost would be approx. $7.8 billion. While this number has not been exceeded or even met, it anticipates a higher total before the claims deadline of April 22, 2014. BP had already raised its estimate to $8.5 billion earlier this year, and now warns investors that this revised estimate is likely too low also. BP says there is no way to accurately estimate, based on the data received, how much it will ultimately pay out. BP has set aside $20 billion in trust to cover any valid claims it receives before the deadline.
As a result of higher claim values, BP challenged the court, claiming the objectives through which causation is determined were unfair and excessive. Unfortunately for BP, Judge Barbier overruled these objections, allowing the existing standards through which businesses qualify for claims to remain intact.
There are over sixty ways a business can qualify for economic loss funds through the new Settlement. These are based on strict, objective mathematical formulas determined by a company’s financial documents, and, if a company does not meet causation, they do not qualify for any funds; this is not a handout by any means.
Unlike most Settlement programs, BP is not required to inform those who may qualify that they in fact do have a valid claim.
It is always worth the look. Are you eligible?