A North Texas judge has ruled against ExxonMobil to dismiss a securities class action lawsuit filed two years ago against the energy company.
The ruling by Northern District of Texas Judge Ed Kinkeade was made this week in which he mostly denied the motion by Exxon Mobil to dismiss the suit.
The suit was filed in 2016 when investors alleged the company had failed to adjust or delayed the adjustment of the “proved reserves” the company carried in its balance sheets. The investors claimed the proved reserves should have been adjusted because at the time, it was no longer economically feasible to realize the value of the assets. They also argued the company failed to adjust for falling global oil prices and recognize the impact of and costs linked with climate change.
Read more about the ruling and its significance from D and O publisher Kevin M. LaCroix.