Exxon Mobil Corporation Class Action Lawsuit
- Company Name
- Exxon Mobil Corporation
- Stock Symbol
- Class Period
- November 6, 2019 to January 14, 2021
- Northern District of Texas
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.
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