A never-before-witnessed, unique lawsuit regarding climate change was filed against Exxon Mobil, the US oil giant. The hearings of the case between the state and the company are all set to get underway in New York on Tuesday in the State Court at Manhattan. The trial is expected to last for 15 days.
The state has held the company accountable for misguiding the investors regarding the potential price of climate regulation and related issues to its business operations. Exxon has denied the charge, claiming that it has shared all the necessary relevant information with the stakeholders. They also accuse that the claims have politically motivated.
This state versus Exxon case is one of many legal lawsuits filed against the oil and gas producing companies in recent times. Rex Tillerson, the former US Secretary of State of Trump Administration is likely to attend the trials at the Court of Law. The former Secretary of State, who was at the Office from February 2017 till March 2018, was also the Chairman and CEO of Exxon since 2006 till he was elected the Secretary of State.
The attorney general of New York filed the petition for the financial fraud last year. Following years of investigations carried out by the state authorities. While filing the case, the state said that in every internal document that was submitted, it clearly and unmistakably evident that the Company has evaluated the new projects based on the forecasts for costs that are associated with the climate change, which were less than what the company told the investors that it was using.
Exxon, on the other hand, does not oppose the claim that it used two separate calculations for deriving the cost of potential regulation. However, the company argues that those calculations were absolutely proprietary and therefore, did not mislead the investors.