A Business and Consumer Law Firm 1
Questions How many people have submitted a claim or know someone who has submitted a claim already? How many people are uncertain what to do or have reservations about filing a claim? How many people are more confused now with all the recent BP advertising and claims of fraud and other negative attacks on the Settlement Program? 2
Today s Agenda Facts, then Myths What the Deepwater Horizon Court-supervised Settlement Program (DHCSSF) covers and how does it operate to help all potential, valid claimants BPs misinformation campaign: Why they are doing it and what they are not telling you? 3
What is the Deepwater Horizon Settlement Program? The Program is a landmark class action settlement specifically designed to resolve the massive number of valid legal claims being filed after the April 20, 2010 oil spill. BP wrote it. BP negotiated it. BP pushed for it to reduce its investor uncertainty. And, then BP signed it. It is anticipated to cost BP in excess of $9.8 billion but the Settlement is uncapped. BP will pay ALL valid claims. The deadline to file a claim is April 22, 2014. After that deadline, claims are forever barred for all companies in all the covered industries. There are only 4 months left to exercise our rights for a potential claim. 4
Who Has Claims Under the New Settlement Program? Due to the widespread impact, the assumption is that nearly all businesses in specific geographic areas were affected and are eligible therefore, traditional causation is waived. There is no requirement to show a direct connection between the oil spill and your financial circumstances. If you meet the strict economic thresholds, BP admits they caused you harm in 2010. This is in no way free money. Hundreds of businesses as far as one hundred miles from the coast or more are included. It s Reagan trickle-down economics. 5
6
BP s Misinformation Campaign BP initiated an aggressive National Ad Campaign designed to chill new claim filings. Ads have appeared in the New York Times, USA Today, Tampa Tribune and any/every publication in the zones: 1) Advertisements imply that fraudulent claims are being filed, and that the problem is rampant 2) BP says the Administrator is miscalculating damages, and businesses are being paid for "fictitious" losses 3) BP is reporting that the Program is causing them financial hardship, and they are running out of money 7
Reality of the Situation There is no evidence of any rampant fraud occurring. Former FBI Director Freeh investigated and reaffirmed that the Program is sound but for a few isolated incidents. The Fraud Hotline has always existed as part of the Settlement Agreement. With all of the fraud protections in place, it is unlikely that fraudulent claims would be successful: 5 years of tax returns need to match P&Ls Sales and use tax returns needed, if applicable Tax EIN for every businesses and Incorporation Articles. 8
Fraudulent Claims Will Not Qualify Damages are being calculated exactly as BP agreed they should. This has also been re-affirmed repeatedly by Judge Barbier and again by Louis Freeh. More claims than originally anticipated are being filed, and BP has a case of buyer's remorse. BP originally estimated to its shareholders that it would likely pay out $7.8 billion under the Program, and the current trend is that it may exceed that. 9
BP is Profitable & Was Doing Good BP continues to post billions in profits, despite its cries about possible takeovers and declining revenue. Its market cap is up ~$20 billion since signing the Settlement. They have reported that they will be paying greater dividends in 2013 than they did in 2012. BP established this Settlement Program in good-faith. They have also paid billions in settling their criminal charges, environmental damages, and currently in Court on the Clean Water Act. But, BP did this. This was NOT a NATURAL disaster. BP should not now twist all their good efforts by scaring potential claimants and blaming others for their situation. 10
The Truth About the Program The media campaign is merely a tactic by BP, designed to chill legitimate claims by the very businesses it was designed to help. Attempting to cut billions in claims exposure, BP still wants the Program to succeed so that all future claims are forever barred. BP has ongoing court challenges, and we anticipate their current pending appeal will be resolved in the coming months. Bottom Line: The Program is currently partially stayed but is expected to resume after a ruling early next year. The average business claim remains $240,000. Real money that can help real businesses in the Gulf Coast. 11
Current Claims Data (9-10-13) 206,126 total claims have been submitted to the Program to date. 69,485 of these claims are business economic loss claims (~33%); only 50% of these claims have yet started the court review process. $3,444,234,676 in payments have been made by the Program to date. Money is being paid out on valid claims The Settlement Program is swamped. We advise all potential clients to get evaluated and get valid claims submitted soonest. 12
Why Legal Representation is Important Deadlines to respond to information requests are strict and short, so a focused effort now is critical. This is a legal settlement; business owners need a law firm advocating for them. Any experienced BP law firm. ERG is a full-service firm that handles hundreds of clients from the very small (~$50K claim) to the very large (1,000+ locations, multi-billion dollar companies). We handle the entire claim in-house from start to finish. An Order issued on May 20 th now grants the Federal District Court discretion to review any case on appeal internally in the Program. The steps needed to work through this process require a law firm s involvment. 13
Who We Are ERG is a statewide law firm, with offices in Tampa, St. Petersburg, Sarasota, Cape Coral, Ft. Myers, Naples, and Orlando, dedicated to representing claimants in the BP Settlement Program. We are a traditional law firm, solely focused on the Settlement Program, and equipped to handle every aspect of the claim in-house and all appellate proceedings. 14
ERG is Here to Help Please contact us if you would like to speak further about working with ERG. My email Hank@ERGLawFirm.com www.erglawfirm.com 15