Conflicts of interest in handling of the Gulf Coast Claims Fund?

There is a debate brewing related to the Gulf Coast Claims Facility, administered by Ken Feinberg. Mr. Feinberg’s firm, Feinberg Rozen, is being paid $850,000 a month by BP to settle claims against BP and then release BP from liability BP. Several blogs, organizations and articles have argued that Feinberg is acting under a conflict of interest.

For example, here is a letter by the Center for Justice and Democracy to the Attorney Generals of Alabama, Louisiana, Florida, Mississippi and Texas arguing that "these conflicts of interest raise urgent concerns about the integrity of the GCCF process and require a thorough and immediate investigation before individuals and businesses are pressured into accepting final settlements and permanently signing away their rights."

For more on the issue go here, here, and here. Finally, for some comments on the subject by professional reposonsibility scholars go to the Legal Ethics Forum.