The principal funder of a fraudulent lawsuit against Chevron in Ecuador has reached a settlement agreement with the oil major.
James Russell DeLeon has withdrawn financial support from the Ecuador litigation and as a result Chevron has agreed to release all claims against him.
The company had brought claims against Mr DeLeon in Gibraltar where he maintains a residence for his role in funding and advancing the Ecuadorian lawsuit.
On March 4, 2014, Judge Lewis Kaplan of the US District Court for the Southern District of New York ruled that the $9.5 billion judgment against Chevron in Ecuador was the product of fraud and racketeering activity, finding it unenforceable in the United States and holding Steven Donziger, the lead lawyer behind the lawsuit, liable for RICO violations.
The judgment also discussed DeLeon’s involvement, which included providing the main source of funding for the propaganda film Crude, contributing approximately 60% of the film’s total funding.
As part of the settlement, DeLeon has agreed to assign to Chevron all of his financial interests in Crude.
A spokesman for Chevron said in filings with the Gibraltar court, Mr DeLeon had disclosed having invested $23million in the case in exchange for a 7% stake in the $9.5billion Ecuadorian judgement against Chevron.
Mr DeLeon’s funding entity, Torvia Limited, and his associate, Julian Jarvis, are also parties to the settlement.
R. Hewitt Pate, Chevron’s vice president and general counsel, said: “We are pleased that yet another long-time supporter has ended his association with this scheme.
“Chevron will continue to hold accountable those who associate themselves with this fraudulent litigation.”
In a public statement released today, Mr DeLeon said: “Commencing in March 2007, I provided funding to support the litigation in Ecuador against Chevron Corporation, in the good faith belief that I was supporting a worthy cause.
“However, I have since reviewed the March 4, 2014 opinion by Judge Kaplan of the United States District Court for the Southern District of New York setting out the Court’s findings and I have also considered the evidence presented during the trial.
“As a result, I have concluded that representatives of the Lago Agrio plaintiffs, including Steven Donziger, misled me about important facts. If I had known these facts, I would not have funded the litigation.
“I no longer seek or wish to receive any financial benefit from this matter and I have therefore decided to relinquish my entire interest in the litigation to Chevron.”
Chevron still has cases pending in Gibraltar against UK-based Woodsford Litigation Funding Ltd. for its role in funding the lawsuit; Amazonia Recovery Ltd., a Gibraltar-based company set up by Donziger and his associates to receive and distribute funds resulting from the Ecuadorian judgment against Chevron; and Pablo Fajardo, Luis Yanza and Ermel Chavez, who are all directors of Amazonia Recovery Ltd.
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