Exxon Wins New York Climate Change Fraud Case

A judge has handed Exxon Mobil a victory in only the second climate change lawsuit to reach trial in the United States. The decision was a blow for the New York Attorney General's Office, which brought the case.

Justice Barry Ostrager of the New York State Supreme Court said that the attorney general failed to prove that the oil giant broke the law.

"Nothing in this opinion is intended to absolve ExxonMobil from responsibility for contributing to climate change through the emission of greenhouse gasses in the production of its fossil fuel products," Ostranger wrote. But, he added, "this is a securities fraud case, not a climate change case."

In a three-week trial, New York state prosecutors argued that the oil company had downplayed the financial risks it faces from possible climate regulation. Attorney General Letitia James said doing so made Exxon's assets appear more secure than they really were, which in turn affected its share price and defrauded investors.

Ostrager concluded that James' office "failed to prove by a preponderance of the evidence that ExxonMobil made any material misrepresentations that 'would have been viewed by a reasonable investor as having significantly altered the "total mix" of information made available.' "