A Texas jury ruled on Wednesday that Exxon Mobil (NYSE:XOM) was not liable in a lawsuit accusing the energy giant of misleading investors through disclosures connected to its Canadian oil sands business and Rocky Mountain natural gas operations.
Investors Failed to Prove Fraud Claims
The case, originally filed in 2016, alleged that Exxon hid losses tied to its Canadian bitumen assets, failed to properly reflect carbon-cost assumptions in reserve valuations, and postponed impairment charges related to dry gas assets in the Rocky Mountains.
According to the jury verdict filed in federal court in Dallas, investors who purchased Exxon common shares between February 24, 2016 and October 28, 2016 did not demonstrate that the company had deceived shareholders.
Dispute Focused on Reserve Valuations and Accounting
Plaintiffs argued that Exxon shares traded at artificially elevated levels because the company allegedly withheld important information relating to reserve estimates and accounting methods tied to the affected assets.
The verdict represents a significant legal win for Exxon, which has consistently denied wrongdoing in connection with the claims surrounding its energy asset disclosures.