A Texas jury found Exxon Mobil not liable in a securities fraud lawsuit. Investors alleged the company defrauded them through disclosures regarding Canadian oil sands and Rocky Mountain gas projects.
The 2016 lawsuit claimed Exxon concealed losses in Canadian operations. It also alleged the company failed to account for future carbon costs in reserve valuations during falling energy prices.
The verdict absolves Exxon of misleading investors who purchased stock between February and October 2016.
This case marks the first securities class-action lawsuit to target accounting practices related to climate change risks. The outcome sets a notable precedent for the energy sector.