Halliburton announced that it has reached an agreement to settle a substantial majority of the plaintiffs’ class claims asserted against the company as a result of the April 20, 2010 Macondo well incident in the Gulf of Mexico.
The approximately $1.1 billion settlement, which includes legal fees, is subject to approval by the United States District Court for the Eastern District of Louisiana, and will be paid into a trust until all appeals have been resolved in three installments over the next two years. The company’s previously accrued loss contingency provision relating to the multi-district litigation proceedings is currently $1.3 billion.
The agreement includes the following:
Payments will be held in the trust, pending the finalization of this settlement which is contingent on final Court approval, including any appeals of:
Additionally, the settlement is subject to an agreed-upon level of participation by the current claimants which, if not achieved, allows Halliburton to terminate the agreement.
Press Release, September 02, 2014; Image: Wikimedia