New York officially sues Exxon Mobil for misleading investors on climate change

Photo by Gary Gardiner/Bloomberg via Getty Images

Enlarge / Photo by Gary Gardiner/Bloomberg via Getty Images (credit: Getty Images)

The New York State Attorney General hit oil giant Exxon Mobil with a lawsuit on Wednesday, claiming that the company misled its investors about climate change and the risks that it would cause for their investment.

The lawsuit has been in the works for years. New York started investigating Exxon Mobil in November 2015, when it subpoenaed the company for financial records as well as internal documents and communications.

Wednesday's lawsuit (PDF) claims that the company told investors it was managing risks from existing and potential climate change regulations, while it allegedly wasn't. Failing to build political risk into its financial models would have made Exxon Mobil look more profitable, and consequently investing in the company might have seemed like a better bet to investors.

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