Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Exxon Mobil Corporation
Oklahoma City, OK (November 10, 2016) – On November 7, 2016, a securities class action lawsuit was filed in the United States District Court for the Northern District of Texas against Exxon Mobil Corporation (NYSE: XOM). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is February 19, 2016 through October 27, 2016. More specifically, this litigation was filed because the Company repeatedly highlighted the strength of its business model and its transparency and reporting integrity, particularly with regard to its oil and gas reserves and the value of those reserves. Exxon's public statements were materially false and misleading when made as they failed to disclose: (a) that Exxon's own internally generated reports concerning climate change recognized the environmental risks caused by global warming and climate change; (b) that, given the risks associated with global warming and climate change, the Company would not be able to extract the existing hydrocarbon reserves Exxon claimed to have and, therefore, a material portion of Exxon's reserves were stranded and should have been written down; and (c) 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 defendants' positive Class Period statements, Exxon common stock traded at artificially inflated prices, reaching a Class Period high of more than $95 per share, and the rating agencies maintained Exxon's AAA debt rating – the highest – permitting Exxon to sell $12 billion of corporate debt at extraordinarily favorable rates during the Class Period.
On October 28, 2016 during pre-market hours, the Company issued a release announcing its financial results for the quarter ended September 30, 2016 in which the Company announced a possible future write-down of 3.6 billion barrels of oil sand reserves and one billion barrels of other North American reserves that Exxon now conceded were not profitable to produce under accurate current prices. This news led to a subsequent drop in Exxon share price. On this news, Exxon's share price fell to close at $84.78, on unusually high trading volume.
Plaintiff seeks to recover damages on behalf of all Exxon Mobil Corporation shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Friday, January 6, 2017 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Thu, November 10, 2016
by Robin Hester filed under