Christina Spicer  |  February 18, 2021

Category: Legal News

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Exxon investors lodge class action over inflated assets

A class action lawsuit filed on behalf of all Exxon investors accuses the company of falsely reporting its assets, leading to plummeting stock prices once the deception was revealed.

Lead plaintiff, Martin J. Bentler, says that he and other investors were taken in by false and misleading statements made by Exxon and its representatives about the value of one of its oil holdings, the Permian Basin located in the southwestern United States. The lawsuit contends that Exxon overinflated its valuation of the region by $20 billion, overestimating how quickly it could drill for oil and gas and increase production.

Exxon employees allegedly complained about the misrepresentation and the deception was revealed in a report by The Wall Street Journal on Sept. 13, 2020. On that day, says Bentler, he and other Exxon investors suffered substantial losses as the company’s stock declined by $.24 per share.

The Securities and Exchange Commission (SEC) launched an investigation after a whistleblower complained about the inflated valuation of the Permian Basin. Again, The Wall Street Journal reported on the SEC investigation and again Exxon stock prices dropped, falling $2.42 per share on Jan. 15, 2021.

The Exxon investors class action lawsuit accuses the oil giant of misrepresenting several aspects of its holdings in the Permian Basin, including overstating the value by $10 to $20 billion, publicizing unrealistic and optimistic production goals, the increased risk of regulatory scrutiny, Exxon’s lack of control over its internal financial reporting, and that its statements about the asset “lacked a reasonable basis” as a result.

The class action lawsuit seeks to represent Exxon investors who purchased securities from the company between Feb. 28, 2018 and Jan. 14, 2021. The plaintiff accuses the company of violating SEC rules, resulting in significant losses for Exxon investors.

Did you lose money on Exxon stock due to the allegedly inflated assets reported to the SEC? Tell us what happened in the comment section below!

Lead plaintiff, Martin J. Bentler, and the proposed Class are represented by Bradley Beckworth, Jeffrey Angelovich, Susan Whatley, Karl Rupp, and Cody Hill of Nix Patterson, LLP, and Naumon A. Amjed, Darren J. Check, Ryan T. Degnan, and Karissa J. Sauder of Kessler Topaz Meltzer & Check, LLP.

The Exxon Investors Class Action Lawsuit is Bentler v. Exxon Mobil Corporation, et al., Case No. 3:21-cv-00335-X, in the U.S. District Court for the Northern District of Texas.

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One thought on Exxon Investors Launch Class Action Lawsuit Over Inflated Assets

  1. LISA HAWKINS says:

    Please add me

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