Exxon Mobil, Corporation (NYSE:XOM)Â is being sued by New York Attorney General Barbara Underwood for allegedly deceiving investors about the threats of climate change.
Exxon has maintained that it is accounting for increasing regulations on greenhouse emissions for years. As one of the world’s biggest corporate emitters of greenhouse gases, the company stated that it was meticulously applying the escalating cost of emissions in its business planning. New York’s Attorney General argues that Exxon’s leadership lied about their position, misleading investors in the process.
Market WatchÂ provides a quote from the Attorney General Barbara Underwood:
“However, Exxon did not abide by these representations, and instead did much less than it claimed, deceiving investors as to the company’s true financial exposure to increasing regulations and policies adopted to mitigate the adverse effects of climate change.”
Underwood holds that culpability for the deceitful accounting practices goes all the way to the company’s former CEO Rex Tillerson, who was the US Secretary of State until earlier this year. Tillerson and other top executives knew the company was using proxy cuts to conceal the real risk the company was holding.
Exxon Mobil, Corporation shares were trading at $78.65 per share on Wednesday afternoon, down $1.19 (-1.49%). Year-to-date, XOM has declined -3.05%, versus a 2.17% rise in the benchmark S&P 500 index during the same period.