US District Judge Carl Barbier announced the ruling on Wednesday, as BP tried to temporarily block claims payments while former FBI Director Louis Freeh investigated allegations of misconduct by an attorney who worked on the settlement programme, reported a news agency citing NOLA media group.

BP said on Monday that it has uncovered new allegations of fraud in the settlement programme that has given billions of dollars to Gulf Coast businesses and residents. BP launched a hotline last month for people to report allegations of fraud relating to its settlement programme.

The company said that it has spent USD 14 billion on response and cleanup to help restore the environment so far. BP has also paid more than 300,000 claims totaling over USD 11 billion to help restore the Gulf economy.

The company initially estimated the settlement deal would cost about USD 7.8 billion. That grew to USD 8.5 billion. In March, BP said in a regulatory filing that "no reliable estimate can be made of any business economic loss claims".


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