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Hot Air reports on the Fortune story that traces the role of litigation finance in the Chevron Ecuador lawsuit. The author of this piece excerpts portions of the detailed story and provides additional commentary and analysis:

Be sure to read the long and complicated story in its entirety, and consider this point as you do.  Should we allow investors to incentivize nuisance claims and shakedown class-action suits and further damage our economic strength just to transfer money from corporations to other investors using the poor as a strawman?  Or should we give the Puritans some long overdue credit and start cracking down on “champerty” again?

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Fortune profiles the funding sources behind the Chevron Ecuador lawsuit. The author analyzes the recent developments in the case against Chevron in Ecuador and traces the history of litigation financing and its role here:

Many readers will have already heard about the bitterly contested $18.2 billion environmental judgment handed down against Chevron in February by a judge in Sucumbíos province in northeastern Ecuador, an Amazon jungle region where Colombian narcoterrorists go for R&R. The judgment was entered in the rough-and-tumble oil outpost known as Lago Agrio on behalf of Ecuadorians who live in the area where Texaco, acquired by Chevron in 2001, drilled for oil from 1964 to 1990.

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Daniel Fisher at Forbes explores the funding sources behind the lawsuit against Chevron in Ecuador:

The story behind the financing of the Ecuadorean villagers is a bit more complex. As they were closing in on an $18 billion pollution verdict against Chevron last year, the plaintiffs had a problem. Their lead attorney, Steven Donziger, had spent $6 million or so on the case over almost two decades but he had ruptured his relationship his with longtime financial backer, Philadelphia attorney Joseph Kohn, after a series of missteps including inviting a documentary filmmaker to record damaging conversations on camera. With victory in sight, the lawyers were in danger of running out of cash.

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This article traces the development of the racketeering suit Chevron filed against the trial lawyers and consultants leading a fraudulent litigation and PR campaign against the company:

“All legitimate scientific evidence submitted during the litigation in Ecuador proves that TexPet’s remediation was effective and that the sites it remediated pose no unreasonable risks for human health or the environment,” Chevron officials have pointed out. Moreover, Ecuador’s state-owned company, Petroecuador, was actually the majority owner of the consortium that included Texaco and bears responsibility, with the government of Ecuador, for any environmental damage that has occurred in the region, Chevron has argued.

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This article discusses the RICO suit and international arbitration in the Chevron Ecuador case:

The new RICO suit claims, among other allegations, that Donziger, with early financing from Kohn Swift, drummed up the Lago Agrio litigation with the goal of reaping hundreds of millions of dollars of legal fees. Chevron asserts that Donziger is an accomplished political operative who established a relationship with the Ecuadorian government in order to further the litigation. The complaint details Donziger’s alleged efforts to work with Stratus to produce a ghostwritten report for the purported Ecuadorian court-appointed neutral expert, alleged coconspirator Richard Cabrera. It also contains assertions that Donziger influenced Ecuadorian prosecutors to bring criminal charges against two Chevron lawyers who signed an agreement attesting to the remediation of contamination in the Lago Agrio region; and offers evidence that Donziger and the other conspirators schemed to deceive Congress, the U.S. media, and Chevron shareholders about the merits of the Lago Agrio case.Updates on these actions are available here and here; needless to say, it doesn’t look too good for Donziger, and his clients (former clients?) are looking kinda desperate.

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More on Chevron’s victory yesterday in an Ecuadorian court:

Chevron scored a victory yesterday in the long-running, tangled litigation over alleged environmental damage in Ecuador.

Yesterday a judge in Ecuador dismissed criminal charges against two Chevron attorneys accused of misleading the government about environmental remediation in the Amazon, according to this story in Law 360. The Ecuadorian prosecutor who brought the case can appeal the decision.

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Judge in Ecuador dismisses case concerning environmental remediation:

A judge on Ecuador’s National Court of Justice has dismissed a case against two Chevron Corp. (CVX) lawyers and several former oil-sector officials over an alleged fraudulent agreement tied to environmental remediation, people familiar with the matter said Thursday.

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In the last of a three-part series on the Chevron Ecuador case, The New York Times writes about next steps in the judicial process:

The final battle in Chevron’s high-profile war against an $18 billion judgment over oil pollution in Ecuador is likely to be fought behind closed doors in an ornate building in the Netherlands.

The Peace Palace — a neo-Renaissance structure built in The Hague with the financial backing of industrialist Andrew Carnegie almost a century ago — is home to the Permanent Court of Arbitration, whose specialty is resolving international legal disputes.

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