Exxon’s Climate-Change Accounting Goes on Trial

Wall Street Journal ^ | Oct. 21, 2019 | Corinne Ramey

[karpov]

Exxon Mobil Corp. and New York’s attorney general are headed for a showdown this week over accusations the company deceived investors, a rare trial over how the oil industry accounts for the impact of climate change.

The trial, which begins Tuesday in state court in Manhattan, is the culmination of a sprawling investigation into Exxon and its accounting practices that spanned four years and three New York attorneys general. It is expected to include as a witness former Secretary of State Rex Tillerson, who was Exxon’s chief executive from 2006 to 2016.

The attorney general’s office said the company told investors that it was taking into account the future costs of regulations it expected governments to adopt in response to climate change. But Exxon’s internal calculations didn’t match its public representations, the office said.

The attorney general’s office said the company’s misrepresentations caused investors to overvalue its stock. It estimated the damage to shareholders to be between $476 million and $1.6 billion.

“Exxon in effect erected a Potemkin village to create the illusion that it had fully considered the risks of future climate-change regulation,” the complaint says.

Exxon has denied wrongdoing and said a reasonable investor wouldn’t expect to know such internal details. The company has also accused the attorneys general involved, all Democrats, of being motivated by politics in bringing the case, which the office has denied.

The oil industry has said that it is difficult to estimate the future costs of climate-change regulation, which is uncertain politically and varies across national boundaries, as investors have demanded more information.

[karpov]

The fraud here is that New York is suing because it cares about Exxon shareholders, when its obviously an attempt to prosecute a fossil fuel giant. If Exxon loses and has to pay a big fine, how does that help its shareholders? New Yorkers, like all Americans, have enjoyed inexpensive fossil fuels for decades.

[rktman]

So, it I were Exxon, I would vacate all holdings in ny as of now. Buh bye!

[G Larry]

Does Exxon have the courage to prove in court that man made climate change is a hoax?

[Moonman62]

So Exxon is being sued by a corrupt government because Exxon underestimated government corruption.

[deadrock]

The woke Exxon executives missing out on the swanky leftist parties? No chance.

[G Larry]

There’s some pretty nice shindigs on the right.....

[alancarp]

"Does Exxon have the courage to prove in court that man made climate change is a hoax?"

That's irrelevant to what they're being accused of, but it is indeed that hoax which has created the problem they face...

- Loony Left: 'Climate change is terrible! We have to Do Something.'
- Exxon: 'great, they're gonna tear us apart with new regs to fight a fake problem. We'd better estimate how bad the damage might be to us.'
- LL: 'Exxon, you have no idea how bad we want to punish you... so we'll sue because you haven't figured out the lengths that we'll go to.'

It's completely absurd and entirely punitive. It's a huge problem simply because they say it's a problem. And it's happening.

[stinkerpot65]

Pure political corruption.

[deadrock]

But without the adulation and self esteem stroking.

Besides, the Exxon execs. (if you watch all the Exxon globull warming woke TV commercials) avoid anything ‘right.’

[eyeamok]

Exxon should have Stopped ALL Sales to and in New York when this was filed, it’s not too late, they can walk and freeze to death in the name of Global Warming.