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Court Ordered To Review BP Payout Formula

STEVE INSKEEP, HOST:

NPR's business news begins with a reprieve for BP.

(SOUNDBITE OF MUSIC)

INSKEEP: The energy company has won a partial victory after a U.S. appeals court halted some payments related to the 2010 oil spill in the Gulf of Mexico. This is a big win for BP which had complained that the payout formula was too generous, and compensated people who were not harmed. Billions of dollars in claims were filed by businesses and individuals in the aftermath of the Deepwater Horizon spill.

Now a federal court has ordered a lower court to take a fresh look at the formula used to measure the losses. BP had expected to pay some $7.8 billion in claims, but that amount has grown and BP is no longer estimating what the upper limit is. Transcript provided by NPR, Copyright NPR.

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