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Chevron, law firm settle Ecuador pollution lawsuit

05.07.2014  | 

Law firm Patton Boggs LLP agreed to pay $15 million to settle Chevron's lawsuit over the law firm’s involvement in obtaining a $9.5 billion judgment against the oil company in Ecuador.

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By ANDREW HARRIS
Bloomberg

Patton Boggs LLP agreed to pay $15 million to settle Chevron's lawsuit over the law firm’s involvement in obtaining a $9.5 billion judgment against the oil company in Ecuador. 

Patton Boggs also agreed to withdraw from the Ecuador litigation.

US District Judge Lewis Kaplan in New York on March 4 ruled an attorney from another firm, Steven Donziger, resorted to bribery and fraud in procuring the Chevron judgment in Ecuador that held the oil company liable for polluting the Amazon rain forest. Donziger has appealed the judge’s findings.

Kaplan’s ruling “includes a number of factual findings about matters which would have materially affected our firm’s decision to become involved and stay involved as counsel,” Patton Boggs said in a statement. “Patton Boggs regrets its involvement in this matter.”

On April 29, Kaplan threw out Patton Boggs’s claim that San Ramon, California-based Chevron maliciously sued the firm for pursuing collection of the judgment. The law firm, which provided as much as $15 million to finance the Ecuadoran litigation, had sought access to $21.8 million Chevron had been ordered to post as a bond.

“We are pleased that Patton Boggs is ending its association with the fraudulent and extortionate Ecuador litigation scheme,” Chevron General Counsel Hewitt Pate said in the statement. “Chevron encourages others to disassociate themselves from this fraud.”



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