Prof. Hazard Finds Inaccuracies in BP Oil Spill Compensation Fund Statements

Prof. Geoffrey Hazard has submitted a statement to U.S. District Judge Carl J. Barbier claiming BP's $20 billion oil spill compensation fund, the Gulf Coast Claims Facility, made a variety of "inaccurate and misleading" public statements.

"A recognized standard of accuracy is whether the statements are materially misleading considered as a whole, which is the modern definition of fraud," Hazard wrote in the 10-page statement (with 47 pages of appendices) submitted to Judge Barbier of the Eastern District of Louisiana, who oversees the consolidated federal lawsuits concerning the spill.

"Another standard is that of the Federal Judicial Center's Plain Language Guide for Notice in federal class actions. This guide advises that communications to class members should give 'sufficient information for a class member to make an informed decision,' and avoid omitting 'information that the lawyers may wish to obscure.'" 

Hazard was engaged by plaintiff counsel to determine whether the Gulf Coast Claims Facility, administered by Kenneth R. Feinberg, is releasing inaccurate information. In addition to inaccurate statements, he has declared, claimants are forced to sign away their rights if they take money from the claims center. 

Read the full Courthouse News Service article from January 21, 2011.