Saturday, November 10, 2012

Which Is It? Chevron Tells Shareholders Ecuador Case Under Control But Swears To U.S. Courts It's A "Nightmare"

In his recent blog, Shareholder Shocker: Chevron's Assets Frozen in ArgentinaAmazon Watch's Kevin Koenig explores the lack of shareholder disclosure and the outright lies Chevron is telling its investors about its Ecuadorian legal battles, including a recent ruling in Argentina to freeze up to $19 billion of Chevron's assets in the South American country as payment for the historic judgment out of Ecuador.

Here's what Chevron lawyer Randy Mastro told a U.S. court not that long ago about the Ecuadorians' efforts to collect on their $19 billion judgment for massive oil contamination: 

"So we are definitely right now in a position of that nightmare is here, irreparable harm is imminent…[We] are facing the ultimate Sword of Damocles, and it is over our heads…The Sword of Damocles is not over our heads, it's touching our foreheads.”

Touching our foreheads?  

Here's what Chevron wrote in its public filing to shareholders: 

“Management does not believe an estimate of a reasonably possible loss (or a range of loss) can be made in this case...the highly uncertain legal environment surrounding the case provides no basis for management to estimate a reasonably possible loss (or a range of loss).”

Which is it, Chevron? 

Read more of Koenig's blog here.

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