Theodore Wells, of Paul, Weiss, Rifkind, Wharton & Garrison. Courtesy photoTillerson Expected to Testify as Trial Begins in NY AG's Lawsuit Against Exxon
The attorney general's office has argued that the cost models were inconsistently and confusingly applied, which led investors to pay more than they should have paid for Exxon securities.
October 22, 2019 at 05:24 PM
2 minute read
Former Exxon Mobil CEO, chairman and onetime U.S. Secretary of State Rex Tillerson is expected to testify during a three-week trial in Manhattan Supreme Court, Exxon lawyer Theodore Wells said during his opening statement Tuesday afternoon.
Tillerson will be a "live witness," said Wells, a partner at Paul, Weiss, Rifkind, Wharton & Garrison.
Former New York Attorney General Barbara Underwood sued Exxon in October 2018, saying the company deceived its investors about the effects of climate change on its business and value.
The former CEO's statements were highlighted by the New York attorney general's office during opening arguments.
Wells defended Exxon's practices during opening arguments and accused the attorney general's office of pursuing a political fight on behalf of climate activists.
Wells showed Manhattan Supreme Court Justice Barry Ostrager an agenda from a 2015 meeting at the Rockefeller Family Fund, where he said climate activists mapped out how to fight Exxon. A line on the agenda suggested that they discussed how to get attorney generals involved, Wells said. Exxon's lawyers have said that then-New York Attorney General Eric Schneiderman was successfully targeted by the activists.
Exxon had two different kinds of cost assumptions related to climate change, Wells said. One dealt with direct costs such as emissions taxes and the other was related to a projected decline in demand for oil and gas as global regulations increased, according to Wells. Employees were told to apply cost assumptions "where appropriate," Wells said.
The attorney general's office has argued that the cost models were inconsistently and confusingly applied, which led investors to pay more than they should have paid for Exxon securities.
Wells dismissed the idea that Exxon would not want the most accurate models for its own business.
"Why the heck would you want to lowball yourself?" he said in court. "You would be cheating yourself … you want to use the most accurate cost assumptions."
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
GE Agrees to $362.5M Deal to End Shareholder Claims Over Power, Insurance Risks
2 minute read
Lukoil Pan Americas Sues Investment Firm Over Alleged $18 Million Breach
Trending Stories
- 1Judge Denies Sean Combs Third Bail Bid, Citing Community Safety
- 2Republican FTC Commissioner: 'The Time for Rulemaking by the Biden-Harris FTC Is Over'
- 3NY Appellate Panel Cites Student's Disciplinary History While Sending Negligence Claim Against School District to Trial
- 4A Meta DIG and Its Nvidia Implications
- 5Deception or Coercion? California Supreme Court Grants Review in Jailhouse Confession Case
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
