Wow, that didn't last long. BP shares down 2.6% as soon as the market opened on overnight news that the US Gov't has filed a lawsuit against BP and 8 other defendents under the Clean Water Act.
I guess that the dividend re-instatement won't be any time soon then. I need to consider this latest news in the context of BP's recovery and along side the reference I made to Exxon in the previous blog.
Not sure what this says about the US Gov't. Unless we have been mislead, BP have worked transparently and complied with the clean-up operation and the administrations guidance on compensation and clean-up costs?
The summary on Sharecast states that:
"Fines could exceed $21bn (£13.4bn), on top of the $30bn BP has already paid in compensation, if it is accused of gross negligence and this is proven. Damages are being sought under the Clean Water Act, which prohibits the unauthorised discharge of oil into US waters, and allows the US to seek damages of $1,100 for each barrel of oil spilled.
“We intend to prove that these defendants are responsible for government removal costs, economic losses and environmental damages without limitation,” said US Attorney-General Eric Holder.
“Even though the spill has been contained, the department’s focus on investigating this disaster and preventing future devastation has not wavered.”
Assistant attorney-general Tony West said: “We have not asked for damages at this point because it’s going to take years to fully quantify what the damages are.”
BP responded to the filing of the lawsuit, saying: “The filing is solely a statement of the government's allegations and does not in any manner constitute any finding of liability or any judicial finding that the allegations have merit.”
London (Sharecast)
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