Defending against “arguably the greatest legal fraud in history,” according to the Wall Street Journal: a fraudulent US $9.5 billion judgment issued in Ecuador. Three adverse creditors, including two litigation funders based in the UK and Gibraltar, were trying to monetize this claim against the client.
Kobre & Kim’s integrated team of specialists went on the offense against the adverse creditors in four jurisdictions, ultimately winning several courtroom victories, two landmark settlements, and a US $28 million award on behalf of the client.
An Ecuadorian court in 2011 ordered the client, a multinational corporation, to pay US $19 billion for alleged compliance violations. In return, the client claimed the creditors behind the lawsuit were engaging in a conspiracy and criminal conduct.
A United States District judge ruled that efforts to punish the client were tainted by fraud and corruption – paving the way for the client to question the legitimacy of the claim, with Kobre & Kim’s assistance.
In March 2014, the Supreme Court of Gibraltar dismissed the first adverse creditor's applications for a summary judgment. A year later, Kobre & Kim negotiated a highly favorable settlement, where the adverse creditor agreed to stop funding and surrender his entire stake in the US $9.5 billion judgment, walking away from a US $23 million investment.
In May 2015, Kobre & Kim achieved another major settlement, this time against one of the litigation funders, ultimately resulting in it withdrawing all financial support and agreeing to transfer to the client any proceeds it received.
In December 2015, the Supreme Court of Gibraltar issued a US $28 million default judgment against the third creditor, as well as a permanent injunction prohibiting them from participating further in the conspiracy against the client – effectively eliminating the claims against the client.
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