Q3 Earnings Alert: These are the most overvalued right nowSee Overvalued Stocks

US judge approves shipping companies' $102 million settlement with DOJ over Baltimore bridge collapse

Published 10/25/2024, 10:26 AM
Updated 10/25/2024, 11:25 AM
© Reuters. FILE PHOTO: Wreckage of the collapsed Francis Scott Key Bridge and the container ship Dali are seen from Air Force One, in Baltimore, Maryland, U.S., April 16, 2024. REUTERS/Elizabeth Frantz/ File Photo

WASHINGTON (Reuters) -A U.S. judge approved on Friday a $102 million settlement by the companies that owned and operated the ship that struck Baltimore's Francis Scott Key Bridge in March, killing six people.

The payment, approved by U.S. District Judge James Bredar, resolves the U.S. government's claims after the Justice Department filed a civil claim in September seeking $103 million from two Singaporean companies, Grace Ocean Private Limited and Synergy Marine Private Limited.

A spokesperson for the companies said on Friday they had agreed to pay even though they deny liability. The spokesperson also noted the companies are fully insured for the settlement costs and that no punitive damages have been imposed.

The settlement covers money the U.S. government spent responding to the disaster and clearing the wreck of the Dali ship and bridge debris from the Port of Baltimore so the waterway could reopen in June.

The state of Maryland, which estimates that it will cost $1.7 billion to $1.9 billion to rebuild the bridge and anticipates completion by fall 2028, separately filed claims against the companies for the cost of the bridge, cleanup efforts, environmental claims and other costs.

The shipping companies face additional claims from the families of those killed, workers affected by the port shutdown, Baltimore City and County, insurance companies, a utility and others and the spokesperson said they will challenge them.

© Reuters. FILE PHOTO: Wreckage of the collapsed Francis Scott Key Bridge and the container ship Dali are seen from Air Force One, in Baltimore, Maryland, U.S., April 16, 2024. REUTERS/Elizabeth Frantz/ File Photo

"It is important to highlight that the Federal Government’s claim was unique and significantly different from other claims, as it fell outside the usual limitation of liability framework," the spokesperson said, adding the companies "are prepared to vigorously defend themselves ... to establish that they were not responsible for the incident."

The National Transportation Safety Board said in May that the Dali lost electrical power several times before it crashed into the bridge in the Patapsco River. The FBI opened a criminal investigation in April into the disaster.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.