Chevron has reached a settlement agreement with a lobbying firm after fraudulent claims were brought against the corporation.
Patton Boggs, a lobbying and law firm based in Washington D.C., agreed to pay Chevron $15million after withdrawing its fraudulent Ecuador litigation.
As part of the settlement Chevron agreed to release all claims against Patton Boggs and its partners.
The settlement brings an end to an epic litigation battle over toxic drilling waste in Ecuador.
Chevron was originally slapped with a $9.5billion judgement by an Ecuadorian court.
In 2010, Patton Boggs took up the case on behalf of the indigenous people from Ecuador’s Amazon, who sought to collect their compensation. The plaintiffs originally mounted the court action for environmental damage caused by pits filled with toxic waste from the firm’s oil drilling operations in the area.
But in a sudden turn of events, Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York ruled that the $9.5bn judgment was the product of fraud and racketeering activity. He found it unenforceable in the United States and found New York-based lawyer Steve Donziger liable for RICO violations.
Patton Boggs has now agreed to help Chevron make a discovery against the Ecuadorian plaintiffs and Donziger.
Patton Boggs is one of the leading lobbying firms in the US.
The firm said in a statement: “Based on the Court’s findings, Patton Boggs regrets its involvement in this matter.”
Hewitt Pate, Chevron’s vice president and general counsel, said: “We are pleased that Patton Boggs is ending its association with the fraudulent and extortionate Ecuador litigation scheme. Chevron detailed its objections to Patton Boggs’ conduct in its counterclaim, and today’s agreement brings that litigation to an end. Chevron encourages others to disassociate themselves from this fraud.”