real-time news and commentary for investors
Thursday, Oct 3
BP rises after court victory, but it's just a first step
- BP (BP +1.2%) opens higher after a U.S. federal appeals court halted some settlements related to claims over the oil spill in the Gulf of Mexico in 2010.
- The ruling appears to show that the previous payout formula was too generous, and that it compensated people and businesses that were not harmed.
- BP says in a statement that the ruling "affirms what BP has been saying since the beginning: claimants should not be paid for fictitious or wholly non-existent losses."
- Analysts offer wary praise for the decision: Deutsche Bank says it is "clearly a welcome development" while noting the second phase of the Deepwater Horizon case has begun with no ruling yet on the first phase which set out to apportion liability.