Exxon Mobil is being sued by the attorney general of New York for allegedly defrauding shareholders. The company downplayed the estimated climate change risks to the business.
This is the most significant effort in legal terms for establishing that the public has been misled by the fossil fuel company on the pretext of climate change and now it’s time to hold it responsible. The litigation will follow around three years of investigation. This will not only harm the company in monetary terms but may also cost it its reputation.
The attorney generals of New York didn’t blame the company for causing climate change but brought a shareholder fraud suit against them. The company is said to have engaged in a fraudulent scheme which is longstanding in order to deceive the analysts, underwriters, and investors regarding the risk management by the company due to climate change regulation.
Bullies trying to restrict the Exonn’s First Amendment rights.
Two attorney generals from New York and several other states’ attorney generals will be deployed for the task of investigating the matter. Exxon Mobil has tried to block inquiries in three courts of different states and said that the bullies are trying to restrict the First Amendment rights of the company.
Exxon to turn over all its money earned by the alleged fraud.
The spokesman of the company, Scott J. Silvestri, even said that attorney generals are trying to double down the meritless complaint through this complaint. The suit has been brought under the Martin Act that gives immense powers to prosecute and investigate securities fraud. Exxon has been demanded to turn over all its money that was earned by the alleged fraud as restitution to the investors.
Barbara D, the attorney general, said that the investors trusted Exxon over long-term value of the shares, but the company did not fulfill any of its obligations.
Source: NY Times, The Guardian