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Exxon Mobil Corporation Class Action Lawsuit

Company Name
Exxon Mobil Corporation
Stock Symbol
XOM
Class Period
November 6, 2019 to January 14, 2021
Court
Northern District of Texas

Case Summary

The Exxon Mobil Corporation class action lawsuit charges Exxon and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Exxon securities between November 6, 2019 and January 14, 2021, inclusive (the “Class Period”).  The Exxon class action lawsuit was commenced on January 28, 2021 in the Northern District of Texas and is captioned Yoshikawa v. Exxon Mobil Corporation, No. 21-cv-00194.

Exxon explores for and produces crude oil and natural gas in the United States and abroad.  One of Exxon’s most important oil and gas properties is in the Permian Basin, which is currently the highest-producing oil field in the United States.

The Exxon class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Exxon forced its employees to use unrealistic assumptions regarding the timelines for well drilling in the Permian Basin; (ii) the foregoing assumptions served to artificially inflate the value of Exxon’s well operations in the Permian Basin; (iii) the foregoing conduct, when revealed, subjected Exxon to a heightened risk of regulatory investigation and oversight; and (iv) as a result, Exxon’s public statements were materially false and misleading at all relevant times.

On January 15, 2021, The Wall Street Journal published an article entitled “Exxon Draws SEC Probe Over Permian Basin Asset Valuation.”  The article reported that the U.S. Securities and Exchange Commission probe stemmed from a whistleblower complaint that, during a 2019 internal assessment, workers were forced to use unrealistic assumptions about how quickly wells in the Permian Basin could be drilled to reach a higher valuation, and that at least one worker who complained about the assumptions was fired.  On this news, Exxon’s stock price fell nearly 5%, damaging investors.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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