BP Loses Motion To Suspend Damage Claims During Investigation

Jul 19, 2013

A federal judge has denied an attempt by BP to suspend claims being paid over its 2010 oil spill in the Gulf of Mexico. The oil company wanted a temporary break in payments while an investigation into fraud allegations is conducted.

Former FBI Director Louis Freeh is investigating misconduct allegations against the independent compensation fund for damage payouts. US District Judge Carl Barbier said that, while troubling, there’s no indication of widespread fraud.

BP says two attorneys may have received kickbacks, and Barbier says the claim system has adequate checks and balances.

A US Appeals Court is considering another motion BP filed against the claims administrator. It says the fund is paying for damages not connected to the oil spill.