Exxon Mobil Corp. must face a lawsuit by investors who blamed a drop in the company's shares on the disclosure that regulators were scrutinizing its reserve accounting related to climate change.
U.S. District Judge Ed Kinkeade on Tuesday denied Exxon's bid to dismiss the suit. Mr. Kinkeade wrote that the Greater Pennsylvania Carpenters' Pension Fund, Pittsburgh, sufficiently pleaded securities fraud claims against the oil giant and several executives, including former CEO Rex Tillerson. The pension fund had $842 million in assets as of Dec. 31, 2016, according to its most recent Form 5500 filing.
In the case in Dallas federal court, investors said the Irving, Texas-based company refused to write down any of its oil and gas reserves in the face of declining oil prices.
On Monday, Exxon said in a court filing that the Securities and Exchange Commission concluded its investigation into the company and didn't recommend any enforcement action.