The Lago Agrio Plaintiffs Complain To The SEC

In my post of April 18, I noted that the Lago Agrio plaintiffs had released a report written by Graham Erion, a Canadian lawyer, opining that Chevron had violated the securities laws by failing to make the necessary disclosures to investors regarding the Lago Agrio case. I guessed that “the plaintiffs, via a sympathetic shareholder, may be lobbying the SEC to take regulatory action.”

Prediction confirmed! On May 9, the Unitarian Universalist Association, Zevin Asset Management, and Newground Social Investment, each apparently a Chevron shareholder, asked the SEC and FINRA to investigate “evidence that [Chevron] is violating securities laws by repeatedly making misrepresentations and material omissions regarding its adverse judgment in Ecuador of $18.1 billion for despoiling the environment.”

The SEC’s investigatory process is basically confidential, so I suspect there won’t be any real news about this for some time.

About Ted Folkman

Ted Folkman is a shareholder with Murphy & King, a Boston law firm, where he has a complex business litigation practice. He is the author of International Judicial Assistance (MCLE 2012), a nuts-and-bolts guide to international judicial assistance issues, and of the chapter on service of process in the ABA's forthcoming treatise on International Aspects of US Litigation, and he is the publisher of Letters Blogatory, the Web's first blog devoted to international judicial assistance, which the ABA recognized as one of the best 100 legal blogs in 2012, 2014, and 2015.

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