Description: Shareholder derivative lawsuit against Exxon Mobil Corporation directors and officials concerning alleged misrepresentations of the company's use of proxy costs of carbon.
Saratoga Advantage Trust Energy & Basic Materials Portfolio v. Woods
Filing Date Type File Action Taken Summary 08/06/2019 Complaint Download Complaint filed. Shareholder Derivative Lawsuit Filed Against Exxon in New Jersey Federal Court over Misrepresentations About Proxy Cost of Carbon. An Exxon shareholder filed a shareholder derivative lawsuit against Exxon board members and executive officers in the federal district court for the District of New Jersey. The shareholder asserted that from 2014 through 2016 Exxon “was the lone ‘supermajor’ oil and gas company that refused to writedown its assets during the prolonged price collapse,” until the company disclosed a $2 billion impairment charge in January 2017. The complaint alleged that the defendants knew or were grossly negligent or reckless in not knowing that Exxon’s actual investment and asset valuation processes did not incorporate proxy costs of carbon in a manner that was consistent with Exxon’s public representations and internal policies; that Exxon did not incorporate proxy costs into the impairment evaluation processes; and that certain operations and assets were operating at a loss or impaired. The shareholder further alleged that the defendants’ misconduct caused Exxon to expend resources defending itself in a related securities class action suit in federal court in Texas and in an investigation and lawsuit by the New York attorney general. The shareholder also said the defendants’ actions “irreparably damaged Exxon’s corporate image and goodwill.” The complaint asserted claims of breach of fiduciary duty, waste of corporate assets, and unjust enrichment, as well as claims under the Securities Exchange Act of 1934 against certain defendants who are also defendants in the related securities class action.