Despite its earlier efforts to have the case held in Ecuador, Chevron now claims that the local court system is institutionally corrupt. Using undercover investigators with hidden recording devices, it claims to have found proof of illegal collusion between the plaintiffs and the judges. The evidence of fraud on the part of the plaintiffs lawyers is overwhelming, said a spokesman. We intend to see that the perpetrators of this fraud are held accountable for their misconduct.

　　Analysts think it unlikely that Chevron, which reported earnings of $19bn last year, will agree to pay any damages, since the cost of continuing to appeal is far less than the amount it would have to pay to settle. However, the row may be taking some of the gloss off its performance: while shares in BP and Shell rose yesterday, Chevrons stock was down by about 1 per cent in early afternoon trade in New York.

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