ExxonMobil now is fighting fraud lawsuits on two fronts — one in New York and the other in Massachusetts — alleging that the oil giant defrauded investors by misleading consumers about the central role fossil fuels have played in causing climate change and misleading investors about the climate-driving risks to its business.
Read about the Massachusetts case here.
The latest lawsuit came last week in Suffolk County Superior Court in Boston in a complaint alleging Exxon repeatedly violated the state’s consumer and investor protection law and related regulations.
The lawsuit accuses Exxon of misconduct that includes using deceptive advertising and intentionally misleading Massachusetts investors.
The trial in the New York case began on 22 October. The New York attorney general brought the suit alleging the company used figures internally that were different from what they disclosed publicly when calculating the impact of laws, taxes and other economic aspects of climate change over the coming decades.
The fraud cost investors as much $1.6 billion, according to the the attorney general’s office.Former US Secretary of State Rex Tillerson was the CEO of ExxonMobil from 2006 to 2016, during the years in question, and will testify in the trial, according to a company attorney.
When Tillerson became ExxonMobil CEO in 2006, he identified that climate change regulation would have a major impact on the company’s business and created the process of assessing a dollar amount for it..
“I had taken the view and we had taken the view as a corporation that the risk of climate change was serious and that … appropriate action was to be needed,” Tillerson said, according to the transcript of his deposition.
The New York suit argues that Exxon used two different ways to calculate carbon costs and wasn’t clear when it was using one or the other.
“We think it highlights the deception that Exxon has put forth over the last 50-plus years. You know, my entire life Exxon has been sowing doubt and disinformation about the climate crisis,” Lindsay Meiman, a spokeswoman with the group 350.org, told CNN.
“We’re escalating the demand that is rising around the world for fossil fuel companies to pay for their destruction and what they knew and lied about climate change,” she said.
“Exxon provided false and misleading assurances that it is effectively managing the economic risks posed to its business by the increasingly stringent policies and regulations that it expects governments to adopt to address climate change,” the state wrote in a complaint last year.
The case In New York goes back to 2015, when stories by InsideClimate News and the Los Angeles Times found that while Exxon’s scientists were internally researching climate change to plan its operations; they knew they global climate was being severly affect while the company was casting doubt on global warming.
The lawsuit claims ExxonMobil’s actions had the effect of making its assets appear more secure than they really were, which in turn affected its share price and defrauded investors.
Exxon contends the lawsuit is politically motivated and driven by anti-fossil fuel activists. The company says it was honest with shareholders about how it calculated carbon costs. Exxon Mobil and other oil companies face a growing number of lawsuits that seek financial help in coping with climate-driven floods, drought and heat.
Big Oil has a lot to answer for its role in causing change; perhaps these lawsuits will speed that reckoning.
Image: Target Exxon by Joe Brusky via Flickr CC
One thought on “Exxon in the dock for climate change fraud”
Comments are closed.