Exxon wins New York climate change fraud case
By Laurel Wamsley
10 December 2019
(NPR) – A judge has handed Exxon Mobil a victory in only the second climate change lawsuit to reach trial in the United States. The decision was a blow for the New York Attorney General’s Office, which brought the case.
Justice Barry Ostrager of the New York State Supreme Court said that the attorney general failed to prove that the oil giant broke the law.
“Nothing in this opinion is intended to absolve ExxonMobil from responsibility for contributing to climate change through the emission of greenhouse gasses in the production of its fossil fuel products,” Ostranger wrote. But, he added, “this is a securities fraud case, not a climate change case.”
In a three-week trial, New York state prosecutors argued that the oil company had downplayed the financial risks it faces from possible climate regulation. Attorney General Letitia James said doing so made Exxon’s assets appear more secure than they really were, which in turn affected its share price and defrauded investors.
Ostrager concluded that James’ office “failed to prove by a preponderance of the evidence that ExxonMobil made any material misrepresentations that ‘would have been viewed by a reasonable investor as having significantly altered the “total mix” of information made available.’ “
James released a statement following the verdict, saying that the case had compelled Exxon “to answer publicly for their internal decisions that misled investors.”
“Throughout this case, we laid out how Exxon made materially false, misleading, and confusing representations to the American people about the company’s response to climate change regulations,” James said.
“Exxon’s inability to tell the truth further underscores the lies that have been sold to the American public for decades,” she said. “Despite this decision, we will continue to fight to ensure companies are held responsible for actions that undermine and jeopardize the financial health and safety of Americans across our country, and we will continue to fight to end climate change.” [more]
