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Court Says BP Must Continue Making Settlement Payments

According to reports, a judge has denied BP (NYSE: BP)’s request to suspend oil spill settlement payments.

BP has been growing increasingly annoyed as the volume of claims and payments has risen of late. The company claims that while it believes in paying businesses who suffered damages, it thinks that some claims are fraudulent and the court appointed trustee isn’t doing an adequate job of investigating.

In June, the court appointed a “special master” to conduct an investigation of the fund based on the misconduct allegations. Later, BP asked the court to suspend all payments until the results of the investigation are complete.

Attorneys for the plaintiffs, those who are seeking restitution from BP, didn’t believe that payments should be suspended. They said, “However, BP has not identified a single claim that it contends was ‘tainted’ or otherwise affected by the alleged conflict of interest.”

On Friday, a judge agreed with the plaintiffs and ruled that BP must continue making payments while the investigation is ongoing.

[stock-tools exchange="NYSE" symbol="BP" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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