Filed under: Management , Law , Exxon Mobil (XOM) , Oil While the horrific oil spill by the Exxon Valdez happened all the way back in 1989 (yes that was 19 years ago!), Exxon Mobil (NYSE: XOM ) is still in litigation over how much it should be forced to pay in damages. Last month, Exxon Mobil won a big victory when the Supreme Court (in a 5-3 decision) lowered the company's punitive damages from $2.5 billion all the way down to $507.5 million. While this was good news for Exxon Mobil, there was one little detail left to work out -- interest on all that money. Of course, Exxon Mobil does not want to pay that interest, and today the Supreme Court decided that a lower court needs to make this decision. So just how much interest are we talking about here? Roughly $500 million and counting, as Exxon announced earlier that the victims of the oil spill have requested $488 million in interest. This works out to about $15,000 per victim. What does this amount mean to Exxon? Ten hours of sales. That's right, ten hours. You would think the company would just pay the money and be done with the whole mess, but Exxon will continue to fight and will have its day in the lower court of appeals. Continue reading Exxon Mobil (XOM) still fighting payments on oil spill damages Permalink | Email this | Comments ...
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Filed under: Management , Law , Exxon Mobil (XOM) , Oil While the horrific oil spill by the Exxon Valdez happened all the way back in 1989 (yes that was 19 years ago!), Exxon Mobil (NYSE: XOM ) is still in litigation over how much it should be forced to pay in damages. Last month, Exxon Mobil won a big victory when the Supreme Court (in a 5-3 decision) lowered the company's punitive damages from $2.5 billion all the way down to $507.5 million. While this was good news for Exxon Mobil, there was one little detail left to work out -- interest on all that money. Of course, Exxon Mobil does not want to pay that interest, and today the Supreme Court decided that a lower court needs to make this decision. So just how much interest are we talking about here? Roughly $500 million and counting, as Exxon announced earlier that the victims of the oil spill have requested $488 million in interest. This works out to about $15,000 per victim. What does this amount mean to Exxon? Ten hours of sales. That's right, ten hours. You would think the company would just pay the money and be done with the whole mess, but Exxon will continue to fight and will have its day in the lower court of appeals. Continue reading Exxon Mobil (XOM) still fighting payments on oil spill damages Permalink | Email this | Comments ...