BP Reaches Estimated $7.8 Billion Deal With Spill Victims

BP Plc reached an estimated $7.8 billion settlement with businesses and individuals damaged in the 2010 Deepwater Horizon oil rig disaster that killed 11 people, removing one of three major litigation fronts facing the company over the biggest offshore spill in U.S. history.

The settlement, the amount of which both sides said may increase, will be paid out of a $20 billion trust set up to compensate spill victims, BP said yesterday in a statement. Lawyers for the plaintiffs said the accord, which must be approved by a judge, will resolve most claims for economic loss, property damage and injuries. The trust has about $14 billion remaining, and victims’ lawyers noted there isn’t a cap on damages BP must pay under the deal. BP said if the trust is exhausted, it will pay additional funds directly.