Transocean (NYSE:RIG): Lawsuit Settlement, We're Not Paying

To add insult to injury, Transocean (NYSE:RIG) is saying they're not paying any lawsuit settlement. Victims and their families are suing Transocean and BP. There were a total of 11 deaths due to the explosion of the Deepwater Horizon rig on April 20th. As well as another 17 people injured.

Transocean is the company that owns the drilling rig. The company has invoked an American 19th century law that will limit their financial liability to only $26.76 million. This amount totals only a small amount of what would actually be requested. Just three weeks after the massive explosion, Transocean petitioned a U.S. federal court for protection under the Limitation of Liability Act of 1851.

Martin Davis, director and professor of law at the Tulane University Maritime Law Center said, "it may work, they've got a chance." The Deepwater Horizon rig is technically considered a mobile offshore drilling unit, meaning it is classified as a seagoing vessel the same as a passenger ship or freighter, according to maritime law.