Did Exxon Mislead Investors?
Did Exxon Mobile mislead investors by misrepresenting the impact climate change could have on their shares? New York’s Attorney General, Eric Schneiderman, thinks so. Following a yearlong review of shareholder disclosures, a subpoena was sent on Wednesday to the Dallas-based company. Exxon acknowledges receiving the subpoena, but rejects the allegations that it misled investors.
In a statement released on Thursday, Exxon Vice President Ken Cohen was quoted as saying, “Beginning in the last decade, we’ve informed shareholders and investors on our perception of the business risks associated with climate change through regulatory filings, our annual corporate citizenship report and in other reports to shareholders.” However, both the New York Attorney General’s office and InsideClimate News, a nonprofit publication, suggest their independent investigations show Exxon Mobile has been aware of the business risks of climate change since the 1970s and has only just recently begun to inform investors of the potential financial implications.
Because the investigation is ongoing it is not known if Exxon Mobile is guilty of misleading investors. However, many companies have intentionally mislead investors – an action that entitles those victims to seek compensatory damages through swift legal action.
If you have suffered financial damages due to a misrepresentation of risks, please contact Colling Gilbert Wright to schedule a free consultation with one of our Florida stock fraud attorneys.