Friday, July 23, 2010

BP (NYSE:BP) Being Sued by Alabama Attorney General

Alabama Attorney General Troy King announced on Thursday he will sue BP (NYSE:BP) in order to make up for lost tax revenue because of the Macondo oil well spill in the Gulf of Mexico.

King let it be known he was dissatisfied with government-appointed escrow fund czar Kenneth Feinberg, along with BP, for their handling of claims made against the company.

Concerning the recovery of funds, King said, "Make no mistake - we will be ready and we will pursue all violations of our state's statutes and regulations and we will obtain complete financial restitution for all losses and impacts."

Republican Robert Bentley, a state representative running for governor, said the effects of the oil spill may have a negative impact on General Fund budgets and the state education budget as well. He is a member of the committee which oversees and prepares the education budget for Alabama.

Representing the state in the lawsuit will be Balch Bingham, based in Alabama. They will receive as high as 14 percent of what is recovered from the litigation.


Anonymous said...

Surely state taxes will be collected from compensation payments made by claimants? After all, compensation is to reflect lost income which taxes would be paid on.

Also, why is a law firm being allowed to take a percentage of compensation? Surely they should charge based upon the work actually done as they may look to claim an unreasonably high settlement in order to receive a larger payment. I'm sure no law firm has ever done that before!

Anonymous said...

Attorney General King is correct in stating that it is time for the State of Alabama to file a lawsuit against BP for any unpaid claims, damage to the tax base and other losses and costs resulting from the BP oil gusher in the Gulf of Mexico.

Memories fade with the passage of time. Therefore, witnesses should be deposed under oath as soon as possible. Postponing litigation will only benefit BP.

BP is not concerned about the truth; the oil company is only concerned about ensuring the complete destruction of the proof. Once the leak is plugged and the oil is dispersed throughout the oceans of the world, who’s to say for certain whether BP’s oil well blowout gushed an average of 1,000 or 100,000 bbl/day of oil?

BP's defense will be simple: "Spill, what spill? Dispersants, what dispersants? Compensation fund, what compensation fund?"

For a better understanding of why a lawsuit is not "premature," visit: