The encyclopedia · Finance & Accounting · Legal decision · 1997–2024
Chiquita paid a death squad for eight years — a jury made it answer
A Florida jury found Chiquita liable for financing the AUC paramilitary group from 1997 to 2004, awarding $38.3M to victims' families.
Chiquita Brands International · 2024-06-10
What happened
From 1997 to 2004, Chiquita Brands International made over one hundred payments totalling $1.7 million to the United Self-Defenses of Colombia (AUC), a right-wing paramilitary group designated as a terrorist organisation by the United States. The company later admitted the payments in a 2007 settlement with the U.S. Department of Justice, paying a $25 million fine, but argued it had been coerced.
On June 10, 2024, after a 17-year legal battle, an eight-member jury in West Palm Beach, Florida, found Chiquita liable for financing the AUC under the Alien Tort Statute. The jury awarded $38.3 million to the families of 16 victims murdered by the group. Testimony revealed that internal company documents showed Chiquita believed it could not get the same level of military protection for its banana operations without the payments, and that a key meeting with AUC leader Carlos Castaño had 'virtually no bearing' on the decision to continue paying.
The jury rejected Chiquita's duress defence, finding that the company had never been threatened by the AUC and had voluntarily entered into 'an unholy alliance.' The decision was upheld on appeal in October 2024, with the court refusing to reduce the award. The case exposed a 17-year gap between the company's public admission in 2007 and the victims' day in court.
In Colombia, seven Chiquita executives were separately sentenced to 11 years in prison for their role in the payments. Thousands of additional claims remain pending.
Why it happened
- Chiquita chose to pay a terrorist group for eight years rather than find another way to protect its operations, and internal documents showed the company was never under direct threat
- The company's 2007 DOJ settlement admitted the payments but did not resolve the underlying liability to victims, creating a 17-year gap between acknowledgement and accountability
- The defence of duress failed because the evidence showed Chiquita had alternatives and was never coerced — the jury found the payments were voluntary
The lesson
Paying a designated terrorist group is not a cost of doing business. A jury will decide whether you had a real choice — if the evidence shows you were never threatened, the defence of duress vanishes.
Sources
- Jury finds Chiquita liable for deaths at hands of Colombian paramilitary group — AP News, June 2024
- U.S. court upholds landmark jury verdict for victims of paramilitary violence in Colombia against Chiquita — EarthRights International, October 2024
spotted an error? The club wants to know.
More like this
Chiquita paid $1.7M to Colombian paramilitaries — seven executives got 11 years
Mossack Fonseca built a business on secrecy — one leak destroyed it
A ¥6.3B rescue couldn't stop a ¥23.7B writedown at China's mall giant
Somewhere, someone solved the problem this company failed at. 2nd Opinion →

Comments · 0
Sign in to join the comments.