Exxon Mobil, one of the global leaders in oil and gas market had recently undergone an emission investigation by the New York attorney general, Mr. Eric T. Schneiderman, in which he had reportedly made ‘false, reckless, and inflammatory’ allegations against the company. In retaliation, Exxon Mobil has filed a summons against him, complaining about his investigation approach.
As per earlier reports, Mr. Schneiderman had filed a case against Exxon Mobil regarding the fraud in the cost evaluation of oil & gas assets. He stated that the company has incorporated the proxy costs of carbon in its work, despite the company stating that it does not consider such emission calculations at all. In response to the aforementioned statement, the legal representatives of Exxon Mobil put forth an argument that the investigation undertaken by the Attorney General has been totally illogical, without a trace of legitimate evidence.
Eric T. Schneiderman has apparently submitted an evidence of about three million pages regarding the fraud, including the cost of carbon emission. Legal officials in defense of Exxon Mobil stated that the method used by attorney general was false and investigation without any foolproof evidence leads to closure of the case.
As per the news report, in 2015, the Attorney General had filed an initial summons against Exxon Mobil, in order to inspect if the company had been misleading the shareholders regarding the evaluation of fossil fuel resources. Further, it has been stated by a governmental official that the company destroyed all the documents regarding the cost evaluation. Adopting the proverbial defensive approach, Exxon’s legal expert has argued that the case filed is totally a ‘political witch hunt’.
The New York State Supreme Court has questioned Exxon’s officials regarding the missing emails from the account of the former chief official of the organization, and who is currently as the Secretary of State in the President’s administration. The company has not provided any proof regarding the claim put forth by the Court as regards to the missing emails. However, the Court has taken the liberty to state that the proof of the destroyed documents is not a genuine ground based on which a case can be filed against the company.
This incorrect interpretation of cost evaluations is likely to impact negatively on company’s overall reputation and revenue contribution. Irrespective of whether the Attorney General has a substantial ground to suspect Exxon Mobil’s cost analysis or not, which has, anyway, led to a downturn in the company’s reputation, it is yet to be seen what the company comes up with to resolve the lawsuit charge.
Ojaswita Kutepatil develops content for Market Size Forecasters. A mechanical engineer by qualification, worked as a BDE and Technical Engineer before switching her profession to content writing. As an Associate Content writer, where she pens down write-ups pertaining to the market research industry...