RM Law announces that a class action lawsuit has been filed in United States District Court for the Northern District of Texas on behalf of all persons or entities that purchased Exxon Mobil Corporation (NYSE: XOM) (“Exxon” or the “Company”) common shares between February 19, 2016 and October 27, 2016, inclusive (the “Class Period”).
Exxon shareholders may, no later than January 6, 2017, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Exxon and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/xom.
Exxon is an American multinational oil and gas corporation headquartered in Irving, Texas, and is the world’s largest publicly traded company.
The complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements as it emphasized its business model and its transparency and reported integrity, specifically in connection to its oil and gas reserves and the value of those reserves. Particularly, Exxon’s public statements were materially false and misleading when made as they failed to disclose: (1) that Exxon’s internal reports about climate change recognized the environmental risks caused by global warming and climate change; (2) that, Exxon knew the risks associated with global warming and climate change, and it would not be able to remove the existing hydrocarbon reserves the Company claimed to have and, therefore, a material portion of Exxon’s reserves were stranded and should have been written down; and (3) 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. As a result of the Company’s hyped-up statements, Exxon stock traded at artificially inflated prices, reaching a high during the Class Period of over $95 per share. The rating agencies also upheld Exxon’s AAA debt rating – the highest – allowing Exxon to sell $12 billion of corporate debt at extremely favorable rates throughout the Class Period.
Between August through September 2016, several news sources reported that federal regulators were looking into Exxon’s reserve accounting in regards to climate change and global warming, and the Company’s lack of documentation of any of its oil and gas reserves in the face of declining global oil prices. Following these news reports, Exxon stock dropped to $82.54 per share on September 20, 2016, or over 13% from the Exxon’s Class Period high. Then on October 28, 2016, pre-market, Exxon announced its financial results for the quarter ended September 30, 2016. In it, Exxon revealed that it may be forced to document close to 20% of its oil and gas assets.
Following this news, Exxon stock dropped over $2 per share on October 28, 2016, on unusually high trading volume.
If you are a member of the class, you may, no later than January 6, 2017, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM Law or other counsel of your choice, to serve as your counsel in this action.