BP shares fall 3% as US sues for $21bn

Beleaguered BP saw its shares drop 3% to 461p today as the US government revealed it is suing the oil giant for gross negligence over the Gulf of Mexico oil spill, and is seeking $21bn or more in damages.

This payout would be on top of the $20bn BP has already paid out in compensation to individuals and businesses along the Gulf coast affected by the spill. Rathbones chief investment officer Julian Chillingworth says the group itself is confident the US will not be able to prove gross negligence, but warns if the Obama administration successfully sues BP, it would open the floodgates for further litigation. "The crux of the matter is whether BP is ends up being charged with gross negligence. If that is the case it would be subject to a fine under the Oil Pollution Act, and then a whole...