Justice in the “ExxonMobil Knew” Climate Change Case May Be Just Around the Corner
If you read this article, you’ll understand why this particular case against Exxon may succeed where the others haven’t. According to the 97-page complaint, Exxon kept two sets of books. One was internal, charting the likely future given the carbon tax, the stranded assets, and all the other risks associated with what they knew about climate change and the horrific impact it was soon to make on our environment. The other, which depicted a far rosier future, albeit fictitious, was used to show banks and investors. This ongoing patter of deception was carried on for decades, at the very highest level of management.
Rex Tillerson, CEO from 2006 until 2016, hasn’t been in the news much lately. That’s likely to change soon.
Craig,
If this were the case, nearly every Company Director would be guilty of “keeping two, or more sets of books” !
Most large companies prepare strategic risk assessment for all kinds of scenarios, these are not intended for any other purpose and are not “hidden” for nefarious purposes. Nor are such scenarios relied upon, or intended to be relied upon.
A CEO and Board of Directors is only obliged to provide investor information based on their judgement, considered opinion and information they feel is relevant.
Investors must make their own decisions, and part of that decision is faith in the directors whom they elect to manage the company to the best interests of the shareholders.
Investors can always choose from a number of remedies, the first being they can simply sell their shareholding. Another remedy is attending a shareholder meeting or writing to the board for an explanation, or even gather enough shareholder support to change directors or policy.
Banks and other large financial institutions should be constantly conducting and monitoring the institutions in which they invest. Had you bothered to study the the Directors on the Board of Exxon you may have noticed it comprises a stellar list of very experienced executives from a very wide range of business organizations inclusions including the usual number of bankers or representatives from insurance or equity funds.
If your claims were true, then those compiling “far rosier future, albeit fictitious used to show banks and investors”, would make no sense, since the people compiling the “books” would be using them dishonestly to fool themselves !
That’s the silliness at the heart of the lawsuits.
No “aggrieved claimants suffering genuine losses” exist! As every Federal and State Court so far has ruled, these politically motivated court cases are a perversion of justice, a waste of Court time and resources, ill-conceived and possibly simply vexatious.
There are no “stranded assets”, oil remains hugely valuable and central to the economy.
Exxon Mobil Corp, reported their highest third-quarter profits in four years. The share price has increased with eager investors driving up the price, despite the Union of Concerned Scientists and the NY Attorney-general’s law suit.
Big oil companies have seen profits and share prices slump since 2014 as a result of an oil glut when despite growing demand, supply simply exceeded the wildest estimates. Problem have arisen when production outstripped pipeline capacity, but such problems are being resolved.
I must confess to a certain amount of pride in predicting the timing of the stock rally accurately thereby providing my clients with success and better retirement incomes.
When you rant about the evils of Exxon, you should think more carefully. 89% of US retiree incomes are heavily invested in the oil industry. The hugely profitable oil industry is the single largest taxpayer in the US, directly or indirectly contributing nearly 28% of the nations total economy.
When you attack the oil industry so recklessly, you are like a man sitting on tree branch diligently sawing off the limb behind him, not realizing when the branch falls, so do you !
That’s the crazy lack of sense in ill-conceived schemes like Carbon Taxes. Carbon Taxes don’t “make the oil companies pay”, they just pass on the cost to consumers! Consumers get poorer, and as the cost of energy increases, employers move to jurisdictions without Carbon taxes so the economy starts to diminish, prosperity disappears and America becomes poorer, especially for blue collar workers.
But, that’s not your concern is it ? You can just blame all those greedy billionaires( except for those that support the Democrats).
I have no idea how much the people of New York waste of the lawyer fest in the fruitless pursuit of Exxon, but I’m sure the folks in Fowlerville, Livingston County NY, could sure use even a tenth of that money to improve their standard of living.