News > BP announces settlement

BP announces settlement

BP has reached a settlement to resolve the majority of economic loss and medical claims claims stemming from the Deepwater Horizon accident and oil spill.

The PSC acts on behalf of individual and business plaintiffs in the multi-district litigation proceedings pending in New Orleans (MDL 2179). BP estimates that the cost of the proposed settlement would be approximately US$7.8 billion, including a commitment of US$2.3 billion to help resolve economic loss claims related to the Gulf seafood industry.

Prior to the proposed settlement, BP had spent more than US$22 billion toward meeting its commitments in the Gulf. BP has paid out more than US$8.1 billion to individuals, businesses and government entities. In addition, BP has spent approximately US$14 billion on operational response.

“The proposed settlement represents significant progress toward resolving issues from the Deepwater Horizon accident and contributing further to economic and environmental restoration efforts along the Gulf Coast,” said Bob Dudley, BP Group CEO.

The proposed settlement does not include claims against BP made by the US Department of Justice or other federal agencies (including under the Clean Water Act and for Natural Resource Damages under the Oil Pollution Act), or by the states and local governments. The proposed settlement also excludes certain other claims against BP, such as securities and shareholder claims pending in MDL 2185, and claims based solely on the deepwater drilling moratorium and/or the related permitting process.

The proposed settlement is comprised of two separate agreements, one to resolve economic loss claims and another to resolve medical claims. Each proposed agreement provides that class members would be compensated for their claims on a claims-made basis, according to agreed compensation protocols in separate court-supervised claims processes. The proposed agreement to resolve economic loss claims includes the financial commitment for the Gulf seafood industry and a fund to support continued advertising that promotes Gulf Coast tourism.