Shrimp processors object to BP settlement terms

April 23, 2012 - 12:55 PM

NEW ORLEANS (AP) — A group of Gulf Coast shrimp processors is asking a federal judge to hold off on preliminary approval of portions of BP's proposed class-action settlement of economic damage claims from the 2010 oil spill in the Gulf of Mexico.

The deal calls for BP PLC to pay $2.3 billion for certain seafood-related claims, but a court filing Monday by the American Shrimp Processors Association argues its members are unfairly excluded from that part of the settlement.

The group says the settlement is more favorable for shrimp harvesters and boat captains than processors even though they are in the same industry and have nearly identical future economic risks.

U.S. District Judge Carl Barbier scheduled a hearing Wednesday on the request by BP and the Plaintiffs' Steering Committee for his preliminary approval.