NY Attorney General Sues ExxonMobil for Alleged Shareholder Fraud

Although the SEC announced on August 2, 2018 that it was dropping its two-year investigation of the company’s climate change disclosures, the company continues to face allegations that it misled investors with respect to the risks posed by climate change. On October 24, 2018, the State of New York, through then-Attorney General Barbara Underwood, announced a lawsuit against ExxonMobil alleging that the company engaged in a “longstanding fraudulent scheme” to deceive investors regarding the financial risks of climate change regulations and that former CEO Rex Tillerson was privy to the fraud. The alleged fraud includes over $25 billion in undercounted greenhouse gas-related expenses, along with overestimations of company reserve volumes representing billions of additional dollars in revenue.