BP to pay investors £120 million over Deepwater Horizon oil spill
BP has agreed to pay 175 million dollars (£120.6m) to investors who accused the company of misleading them about the rate of oil flowing after the 2010 Deepwater Horizon rig explosion in the Gulf of Mexico.
In a brief statement, BP said it would pay the investors over this year and 2017. US District Judge Keith Ellison, sitting in Houston, Texas, still needs to approve the deal.
BP has said the agreement does not resolve other securities-related litigation relating to the disaster, which killed 11 workers and poured millions of gallons of crude oil into the Gulf for 87 days.
The class action lawsuit said BP's low estimates of the rate of oil spewing into the Gulf inflated securities prices and accused the company of misrepresenting its safety procedures before the spill.
The lawsuit dealt with purchases of BP American Depositary Shares between November 8 2007 and May 28 2010.