Judge Denies Chevron’s Request to Prevent Seizure of $18B in Assets

A U.S. judge has denied Chevron’s (NYSE:CVX) bid to protect assets that could be seized as part of an $18 billion verdict against the company in Ecuador.

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Chevron had asked U.S. District Judge Lewis Kaplan to block the collection of the judgement and the “dissipating” of any proceeds pending resolution of the company’s racketeering lawsuit alleging that the plaintiffs engaged in fraud to win the multi-billion dollar judgment.

Chevron sought to “temporarily ensure the availability” of all assets while the case in the U.S. proceeds, but the judge ruled that Chevron had made “no effort to quantify the damages it alleged [to have] been sustained to date, let alone to support any damage claim with evidence.”

On February 14 of last year, Chevron was ordered to pay as much as $18 billion as compensatory and punitive damages for Texaco’s alleged dumping of toxic drilling wastes in the Ecuadorean jungle from 1964 to about 1992. Though Kaplan blocked the collection of the Ecuadorean judgment in March, a federal appeals panel in September tossed out that ruling. Chevron will be able to renew its request at a later date.

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To contact the reporter on this story: Emily Knapp at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com