Freedumb! Chevron "Chastises" Analyst Calling For Ecuadorean Settlement, But Stock Price Improves
And in the end, that's really all that matters, isn't it?
After Fadel Gheit put out a note to investors calling for Chevron Corp. to settle a messy environmental lawsuit, the oil and gas analyst received a couple of unexpected calls.
The first was from Chevron, chastising him for suggesting the company back down, he said. The second was from Steven Donziger, Chevrons chief adversary and the controversial lead counsel to a group of Ecuadorean villagers long suffering from contaminated ground and water polluted by oil waste.
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Three years ago, a court in Ecuador rendered the verdict and the stunning $19-billion fine. Chevron refused to pay, saying the judgment was secured by fraud and bribery by the plaintiffs team, led by Mr. Donziger. A New York judge is now considering those allegations. His pretrial rulings have leaned in Chevrons favour.
Its difficult to say how much investors have been swayed by Chevrons ceaseless litigation. At more than 8 per cent of current market capitalization, the potential $19-billion liability is too large for investors to ignore completely, said Brian Youngberg, an oil analyst with Edward Jones in St Louis. Its had an impact, but nowhere near the dollar amount of the judgment, he said. Chevron has almost no remaining assets in Ecuador, making it difficult if not impossible for the plaintiffs to collect.
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http://www.theglobeandmail.com/globe-investor/investment-ideas/a-case-for-chevron/article14917860/