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corrective action. Further, the RICO Defendants' false and misleading statements have caused<br />

Chevron substantial damages. Chevron has had to expend millions of dollars in attorneys' fees<br />

and costs defending itself in the sham litigation the RICO Defendants and their co-conspirators<br />

have prosecuted in Ecuador, and exposing the conspirators' pervasive fraud in the Section 1782<br />

proceedings. On top of the attorneys' fees and expenses, Chevron's interest in executed<br />

contracts, including the 1995 Settlement Agreement and 1998 Final Release, has also been<br />

impaired as a result of the RICO Defendants' and their co-conspirators' collusion with the<br />

Republic of Ecuador. In addition, many of the RICO Defendants' extortionate acts have<br />

presented unfair and false representations of Chevron's business practices, harming Chevron's<br />

reputation and goodwill. As alleged throughout, these harms represent the precise result<br />

intended by the RICO Defendants' misconduct. And worse, it is clear from the RICO<br />

Defendants' actions and words that they have no intention of stopping until Chevron surrenders<br />

to their extortionate demands. Without the Court's intervention, Chevron will continue to suffer<br />

significant harm at the hands of the RICO Defendants and their unlawful scheme.<br />

338. The facts and evidence presented in this Amended Complaint are the result of<br />

many thousands of hours of work by Chevron, its attorneys, and its investigators, and have been<br />

assembled at extraordinary cost. As this Amended Complaint was being prepared for filing,<br />

however, new evidence continued to emerge, and the true nature of the RICO Defendants'<br />

criminal conduct becomes clearer and clearer. Just a few months ago, considering Chevron's<br />

request to obtain discovery directly from the ringleader of this enterprise, Donziger, the United<br />

States District Court for the Southern District of New York summarized the case as follows:<br />

"[T]he name of the game is, arguably, to put a lot of pressure on the courts to feed them a record<br />

in part false for the purpose of getting a big judgment or threatening a big judgment, which<br />

conceivably might be enforceable in the U.S. or in Britain or some other such place, in order to<br />

persuade Chevron to come up with some money. Now, do the phrases Hobbs Act, extortion,<br />

RICO, have any bearing here?"<br />

135

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