Newyork’s attorney general has accused America’s giant oil firm ExxonMobil of misleading its investors about the cost of carbon emission. The trial, which begins this week, will gauge through how the world’s largest oil company has misled the shareholders and the public by lying about the potential cost of climate regulation to its business. Exxon’s trial is supposed to last for 15 days. Former US secretary of state, Rex Tillerson might appear in the court. He has led Exxon almost for a decade. This will be the second climate change case ever to be heard in the court of the United States.
Newyork’s attorney general filed the financial fraud case against Exxon and other oil companies in 2018 after much deliberation and investigation. The state argued that the company evaluated new projects for the cost associated with climate change much lower than what it quoted to investors. These faulty calculations marked investments appear less risky and more valuable. Exxon showed that it was using a higher projected carbon cost than it was actually pertaining. This created a material impact on its share price in the market. On the other hand, the company is calling it completely legitimate to use multiple sets of figures.
Exxon has created an illusion by erecting a Potemkin village that the company took proper measures to evaluate the risk of climate change regulation in the future and incorporated those risks in its business operation, said the lawsuit. Newyork prosecutor said that the estimated revenue of the company would have been much lower if it had used its carbon cost more honestly. The largest fossil fuel firm has denied the allegation. The officials of the company have said that the lawsuit lacks the merit and it is nothing but a politically motivated vendetta used for personal interests. There will be a significant fall in Exxon’s profit bucket if Newyork fines the oil giant. The legal defeat will also dim the goodwill of the company in the market. The oil giant is currently facing various lawsuits from different regions such as Massachusetts, Rohde Island, and the city of Baltimore.