An investor in NYSE:XOM shares filed a lawsuit in Texas over alleged violations of Federal Securities Laws by Exxon Mobil in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Exxon Mobil Corporation (NYSE:XOM) have certain options and for certain investors are short and strict deadlines running. Deadline: January 6, 2017. NYSE:XOM investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The plaintiff claims that between February 19, 2016 and October 27, 2016 the Exxon’s public statements were materially false and misleading when made as they failed to disclose that Exxon’s own internally generated reports concerning climate change recognized the environmental risks caused by global warming and climate change, that, given the risks associated with global warming and climate change, the Company would not be able to extract the existing hydrocarbon reserves Exxon claimed to have and, therefore, a material portion of Exxon’s reserves were stranded and should have been written down, and that Exxon had employed an inaccurate “price of carbon” – the cost of regulations such as a carbon tax or a cap-and-trade system to push down emissions – in evaluating the value of certain of its future oil and gas prospects in order to keep the value of its reserves materially overstated.
The plaintiff claims that as a result of defendants’ positive statements between February 19, 2016 and October 27, 2016, Exxon common stock traded at artificially inflated prices, reaching high of more than $95 per share between February 19, 2016 and October 27, 2016, and the rating agencies maintained Exxon’s AAA debt rating – the highest – permitting Exxon to sell $12 billion of corporate debt at extraordinarily favorable rates between February 19, 2016 and October 27, 2016.
The plaintiff claims that through a series of partial disclosures issued by different news sources between mid-August 2016 and late September 2016, the market learned that federal regulators were actively scrutinizing Exxon Mobil Corporation ‘s reserve accounting related to climate change and global warming and its refusal to write down any of its oil and gas reserves in the face of declining global oil prices.
On October 28, 2016, Exxon Mobil Corporation announced its financial results for the quarter ended September 30, 2016.
Exxon Mobil Corporation disclosed that it might be forced to write down nearly 20% of its oil and gas assets. Specifically, Exxon Mobil Corporation acknowledged that it might have to write down 3.6 billion barrels of oil sand reserves and one billion barrels of other North American reserves that Exxon Mobil Corporation now conceded were not profitable to produce under current prices.
Shares of Exxon Mobil Corporation) declined from $95.12 per share in July 2016 to as low as $82.76 per share on November 4, 2016.
On November 28, 2016, NYSE:XOM shares closed at $86.47 per share.
Those who purchased NYSE:XOM shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com