Case against BP for Spill Could be False Claims Act Case

Because BP was drilling on waters owned by the U.S. Federal Government, if it made any material mistatements in its lease application or failed to mention the safety dangers, it could fall within the provisions of The False Claims Act, a special federal law. This law allows for awards of upto three times the damages to the U.S government for the leak in the Gulf as well as potential civil fines for each misrepresentation. Attorney General Eric Holder does not have to wait to investigate BP’s assertions in the lease applications. There are some BP insiders who knew what really went on and could report known safety violations and knowledge of the potential for the disaster. Such a person would stand to receive an award of upto 25% of the government’s recovery.