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People of New York v. Exxon Mobil Corp.

ELR Citation: 49 ELR 20199
Nos. 567, (N.Y., 12/10/2019) (Ostrager, J.)

New York's high court dismissed the state's securities fraud lawsuit concerning an oil company's accounting of climate change risks. The state argued that the company made misrepresentations and omissions that were material to its investors about how climate change would affect its business by using two different metrics to account for stricter climate regulations—greenhouse gas costs that measured how local regulators might tax emissions, and proxy costs that aimed to predict how demand for oil and gas might change—in shareholder meetings and reports. The court found that the state, which did not call any witnesses who claimed to have been misled by information in the company's meetings or reports, failed to prove by a preponderance of the evidence that the company made material misrepresentations or omissions about its practices and procedures that misled any reasonable investor. It therefore dismissed the suit.