Press "Enter" to skip to content

Exxon Face Fraud Charges For Misleading Investors On Climate Change

ExxonMobil has recently been subjected to legal action taken by the state of New York. The accused company is said to have misled the investors regarding the change of climate that can affect their business. The regulations of greenhouse gas and the probable costs were paid no attention by Exxon. They have falsely assured the investors into thinking that they have considered the accounting. Though all these claims have been regarded to be politically motivated and baseless by the company, The company has decided to take the conflict to the court and fight the allegations there.

The spokesman of Exxon has commented that they are looking forward to refuting the claims of the meritless lawsuit and get the case dismissed. The complaint which has been filed in the supreme court of New York by the Attorney General Barbara Underwood will go through several years of strict scrutiny by the state authorities.

Exxon has been accused of evaluating all the new projects by forecasting all the cost associated with climate change. It has estimated all the costs which were much lower than those that were actually used or told to the investor. With the help of this calculation, the firm has cut down their cost by several billion dollars.

According to the complaint that has been filed, it is said that due to the fraud the company was more prone to facing the risk that is associate from the climate change regulation than from the investors who were misled.

The company has been trying to block all the investigations from a long time and in the year 2016; it has already failed to reveal the research of the company on the associated risk and climate change regulations. The shareholders have asked the firm to provide the calculation of the risk associated with the climate change after reportedly investigating the firm. The city of New York has a history of suing oil companies along with Exxon for their irresponsibility towards the climate change but the court has dismissed the suit.

 

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *