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The New York Attorney General on Wednesday filed a lawsuit against Exxon Mobil, claiming that the company had defrauded its shareholders by downplaying the predicted risk of climate change for its business.
The litigation, which follows more than three years of investigation, represents a financial risk for Exxon, as well as a reputational risk of a company that has strived to create an image inspired by climate change. It could also expose the company to other litigation.
The lawsuit does not charge Exxon for having played a role in creating climate change, although the burning of fossil fuels is a major factor of global warming caused by humans. On the contrary, the company has embarked on a "long-standing fraudulent scheme" aimed at misleading investors, analysts and underwriters "about the company's management of the risks that climate change regulation poses to its company. ".
Exxon told the world that he was ready to face the tighter regulations that would inevitably be needed to fight climate change, the Attorney General's office said. But in reality, according to the complaint, the company "used internal practices inconsistent with its statements, was not disclosed to investors and exposed it to greater risks because of the regulation. on climate change that investors have been led to believe. "
The investigation focused on the mandates of two attorneys general in New York and also involved attorneys general from other states. Exxon tried to block the investigation in the courts of three states and painted it attempted bullying to restrict the rights of the first amendment of society and as part of a conspiracy against fossil fuels supported, inter alia, by the Rockefeller family.
Exxon Mobil did not immediately respond to a request for comment.
Barbara D. Underwood, current Attorney General of New York State, has brought a lawsuit under the Martin Act Act, a state law that gives her broad powers over the law. 39, investigation and prosecution of securities fraud. The suit asks Exxon to return all the money earned through the alleged fraud and return the investors. The lawsuit does not name a sum payable, but if the case succeeds, the amounts could reach hundreds of millions of dollars or even more.
The investigation was opened for the first time in November 2015, about a year after the start of his term by former Attorney General Eric T. Schneiderman. Shortly thereafter, other state attorneys general announced their support for Mr. Schneiderman's efforts; some, including Maura Healey from Massachusetts, opened their own investigations.
Exxon Mobil has a long history of conducting research on climate change, much of which is published in the scientific literature. In 2015, Inside Climate News and The Los Angeles Times stated that the company was well aware of the risks associated with climate change and had used this research in its long-term planning of activities such as drilling in the city. Arctic, even though she had funded groups from the 1990s. In the mid-2000s that denied serious climate risks.
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