NEW YORK, Nov. 09, 2016 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Exxon Mobil Corp. (“Exxon” or the “Company”) (NYSE: XOM ) of the January 6, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Northern District of Texas on behalf of all those who purchased Exxon stock or options between February 19, 2016 and October 27, 2016 (the “Class Period”). The case, Ramirez v. Exxon Mobil Corporation et al , No. 16-cv-03111 was filed on November 7, 2016, and has been assigned to Judge Sam A Lindsay.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to properly disclose the given the risks associated with global warming and climate change in the Company’s ability to extract certain of Exxon’s existing hydrocarbon reserves and by employing an inaccurate “price of carbon” which overstated the value of its reserves.
According to numerous investigative reports, in the 1970s and 1980s, Exxon conducted a scientific research program that documented the potential impact that climate change could have on the Company’s assets and businesses. In addition to failing to recognize the impact of climate change on the value of its reserves, Exxon similarly failed to properly account for the declining price of oil and its impact on the value of its reserves. However, through a series of partial disclosures issued by different news sources between mid-August 2016 and late September 2016, the market learned that federal regulators were actively scrutinizing Exxon’s reserve accounting related to climate change and global warming and its refusal to write down any of its oil and gas reserves in the face of declining global oil prices. The series of disclosures led to a gradual decline from the Class Period high of $95.55 per share to a closing price of $82.54 per share on September 20, 2016, representing a 13.6% drop.
Then, during pre-market hours on October 28, 2016, Exxon issued a release announcing its financial results for the quarter ended September 30, 2016 in which the Company announced a possible future write-down of 3.6 billion barrels of oil sand reserves and one billion barrels of other North American reserves that Exxon now conceded were not profitable to produce under accurate current prices. This news led to a subsequent drop in Exxon share price.
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Take Action
If you invested in Exxon stock or options between February 19, 2016 and October 27, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/XOM. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Exxon’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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