Friday, September 17, 2010

BP (NYSE:BP) Says "No" to Paying Alabama Claim

At one time BP (NYSE:BP) had been ready to work with Alabama and their claims against the company from the Gulf of Mexico oil spill, and from the time Alabama Attorney General Troy King decided to file a lawsuit against the oil giant, they've pulled back on advice of legal counsel, as the matter suddenly became complicated.

Officials from BP said the lawsuit filed by King was definitely part of the reason for deciding not to make payments.

Alabama Governor Bob Riley blasted King for the lawsuit, saying, "If that lawsuit hadn't paralyzed our negotiations, we wouldn't have to make these additional cuts to education funding."

King lashed back at Riley, asserting, " is time for him to get out of the way and let us do our job. It is obvious that BP is not dealing in good faith and is using every excuse possible to keep from paying its obligations both to the individuals and businesses with claims as well as to the state."

That's an odd comment by King when he seems to be the one that got in the way of negotiations, which were in fact proceeding to an agreeable resolution before he filed his lawsuit against BP.

Riley ended up cutting 2 percent from the school budget on the news, although it affected only potential repairs and supplies.

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