New York sues Exxon Mobil, alleging company misled investors on risk of climate change

[steven36]

NY alleges Exxon Mobil defrauded investors about risks of climate change policies

 

"Exxon built a facade to deceive investors into believing that the company was managing the risks of climate change regulation," New York Attorney General Barbara Underwood said in a statement.

 

 

New York Attorney General Barbara Underwood announced a lawsuit against Exxon Mobil on Wednesday, alleging the the company misled its investors by understating risks from climate change regulations.

 

The suit also alleges that former CEO Rex Tillerson "knew of misrepresentations for years," the state said in a press release.

 

Underwood's lawsuit says Exxon "for years assured investors" that the company was accounting for costs from increasingly stringent climate change regulations. Exxon did not properly account for those costs, the state alleges, and instead misrepresented how much the company was exposed to the risks from tightening regulatory policies.

 

"Exxon built a facade to deceive investors into believing that the company was managing the risks of climate change regulation to its business when, in fact, it was intentionally and systematically underestimating or ignoring them, contrary to its public representations," Underwood said in a statement.

 

Exxon Mobil shares fell as far as 1.4 percent in trading, hitting a new intraday low of $78.20 a share.

 

Source