BP Reaches Settlement Over Contaminated Gas

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BP Products North America Inc. has agreed to pay $7 million to settle a class-action lawsuit concerning tainted gasoline produced at its Whiting refinery. In August, the company recalled approximately 4.7 million gallons of gas. The company says it has already paid approximately $16 million to resolve nearly 17,000 claims. July 2, 2013

Statement From BP

BP is committed to providing consumers with quality fuel, and we guarantee every gallon of gasoline we sell.

That's why we took quick action in August of 2012 to recall several hundred thousand barrels of gasoline in Indiana, Wisconsin and Illinois and established a dedicated claims facility to receive and process consumer claims for reimbursement of fuel and repair costs related to the recall.

To date, BP has successfully resolved and paid more than 16,800 consumer claims totaling approximately $16 million.

Although we believe the vast majority of the claims have been resolved, BP this month filed in court a settlement agreement with attorneys representing consumers who are plaintiffs in a class action suit related to the recall. Under the terms of the settlement agreement, BP has agreed to establish a claims process to reimburse eligible consumers for up to an additional $5 million in claims.

The decision to settle this litigation is a reflection of BP's commitment to provide consistent, dependable, high-quality gasoline to its consumers, as demonstrated by its fuels guarantee, and to avoid protracted litigation.

As part of this agreement, BP has engaged a third party notice administrator to place newspapers ads, web postings and other forms of communication to notify individuals who may be eligible to participate in the class action settlement of their options and rights under the settlement agreement.

If the Court preliminarily approves the agreement, BP will publish notices in the media and on a settlement website that will explain who is entitled to receive compensation under the settlement and how to submit a Claim Form. The notices and settlement website will include detailed instructions on how, when and where to submit a Claim Form.

Source: BP PLC

July 1, 2013

News Release

INDIANAPOLIS, Ind. - Representatives from BP Products North America Inc. (BP) agreed to pay $7 million in damages, costs and fees in a class action lawsuit over contaminated gasoline recalled in August 2012. The lawsuit was filed after BP recalled approximately 4.7 million gallons of contaminated gasoline, which it distributed from its Whiting, Indiana refinery to more than 575 retail outlets in Indiana, Illinois, Wisconsin, and Ohio.

Thousands of consumers who purchased the contaminated gasoline experienced issues ranging from engine problems to damage to fuel systems of vehicles and gasoline-powered engines. Class counsel included Will Riley of Price Waicukauski & Riley, LLC and Irwin B. Levin of Cohen & Malad, LLP. Notice to the affected consumers will issue shortly.

BP identified a "process upset" as the source of the gasoline contaminant. It stated that higher than normal levels of a hydrocarbon polymer passed through the refinery unit, contaminating the gas that was distributed to the affected retail outlets.

"Finally, through the court system, has BP agreed to fully and fairly compensate consumers who bought their adulterated product. It’s been a long road but we’re pleased with the result," stated Irwin Levin of Cohen & Malad, LLP.

Will Riley of Price Waicukauski & Riley, LLC added "I am pleased that the legal system was able to set this situation right for Hoosiers, and those in the surrounding states."

Source: Cohen & Malad LLP