HOUSTON (Reuters) – New York Law Firm claims that Exxon Mobil Corp. ( XOM.N ) on Wednesday claimed that the…
HOUSTON (Reuters) – New York Law Firm claims that Exxon Mobil Corp. ( XOM.N ) on Wednesday claimed that the world’s largest oil company for many years misled investors about the risks of climate regulations on its company.
PHOTO PHOTO: A logo of Exxon Mobile is displayed on a screen above the floor of the New York Stock Exchange shortly after the opening clock in New York, USA on December 5, 201
7. REUTERS / Lucas Jackson / File Photo
] The right, filed in New York Supreme Court, New York County, seeking undetected damage, a court decision for a review of the company’s representations, and the company corrects “many incorrect information” to investors.
Exxon Insured claims that it had evaluated the impact of the climate rules on its business using a “proxy cost” for the likely effects of future events on its business. However, these proxy numbers are often not used in their internal planning or cost assumptions.
The company failed to correctly account for such costs to determine its amount of oil and gas reserves, or write down the value of its assets, a metric that is important for investors, the cost is required.
“The company claimed to be the factoring of the risk of increasing climate change regulation in its business decisions,” noted Advocate General Barbara Underwood in a statement. “Like our survey, Exxon often found no such thing.”
Exxon “looks forward to relying on these claims as soon as possible and getting rid of this merciless civilian trial,” spokeswoman Scott Silvestri said in a statement.
He further describes the costume as “product of closed door lobbying of special interests, political opportunism and the inmates of the lawyer to acknowledge that a three-year investigation has not detected any mistake.”
The suit was taken under the Martin Act, a civil charter used by New York prosecutors to conduct fraud on investment and other financial companies.
“In this case, the state remains with the Martin Law as a political weapon,” said Lisa Rickard, chairman of the US Chamber Institute for Legal Reform, which calls the case “nothing but a distortion of the securities lawsuit.”
Exxon was successful in stopping the New York investigation and a similar probe by the state of Massachusetts claiming that Exxon misled consumers with their statements about climate change.
“This is a very important trial,” said Ken Kimmell, president of the Union of Concerned Researchers. “New York State Secretary has received a lot of documents and we should assume that they left the garment based on the information received during that process.”
Exxon and other oil companies including BP Plc ( BP.L ), Chevron Corp. CVX.N ) and Royal Dutch Shell ( RDSa.AS ) Face seekers of cities and counties in the United States seeking funds to pay for lakes and other infrastructure to protect against rising sea levels caused by climate change.
Reporting by John Benny in Bengaluru and Gary McWilliams in Houston; Editing Marguerita Choy and Diane Craft
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