Greenpeace USA Braces for Bankruptcy Amid Pipeline Protest Verdict
A Financial Crisis Looms for the Environmental NGO
U.S. Chapter of Greenpeace Facing Potential Bankruptcy
In a disconcerting blow, Greenpeace USA is potentially teetering on the brink of bankruptcy following a costly court ruling in North Dakota. The organization, which has been ordered to pay exorbitant damages to Energy Transfer for its involvement in pipeline protests, faces a financial burden that exceeds its annual budget[1].
The verdict, which stems from protests against the Dakota Access Pipeline in 2016 and 2017, includes charges of defamation, trespassing, nuisance, and conspiracy. Energy Transfer called these activities part of a "lawless and violent scheme" to disrupt operations[2]. Although the federal lawsuit Energy Transfer filed in 2017 was dismissed, the state court case resulted in a victory for the pipeline company[1].
The Financial Storm
The damages owe more than Greenpeace's annual budget, potentially pushing its US branch to the edge of insolvency. Despite considering the Dutch courts unlikely to recognize the verdict, Greenpeace International recognizes the potential for catastrophic financial consequences if the judgment stands against its US affiliates[1][3].
Undeterred, Greenpeace has declared its intention to appeal the decision and investigate legal avenues in international courts. In response to the judgment, Greenpeace International's general counsel declared a forthcoming battle in Dutch court this July, expressing resoluteness in the face of adversity[1].
The Silencing of Speech and Protest
Experts classify this case as a Strategic Lawsuit Against Public Participation (SLAPP), a tactic utilized by influential entities to stifle public opposition to issues of public significance[2]. With this ruling serving as a warning bell, environmental groups fear that they are increasingly vulnerable, particularly smaller advocacy organizations with limited resources[2].
The Future of Free Speech and Peaceful Protest
In light of this verdict, Greenpeace and other environmental organizations rally against what they perceive as a strategy for misusing the legal system to quash dissent. The significance of this case could extend far beyond Greenpeace, potentially impacting free speech and the right to peaceful protest.
- The Commission has also been consulted on the draft directive regarding the greenpeace case in North Dakota, where Greenpeace USA was ordered to pay damage charges for its involvement in pipeline protests.
- Despite the Dutch courts unlikely recognition of the verdict, Greenpeace and its international affiliates could face bankruptcy, as the damages owed exceed the organization's annual budget.
- Energy Transfer's lawsuit, seen by experts as a Strategic Lawsuit Against Public Participation (SLAPP), has been perceived by Greenpeace and other environmental organizations as a tactic to stifle public opposition, potentially impacting free speech and the right to peaceful protest.
