Current:Home > ScamsChainkeen|Exxon Loses Appeal to Keep Auditor Records Secret in Climate Fraud Investigation -Quantum Capital Pro
Chainkeen|Exxon Loses Appeal to Keep Auditor Records Secret in Climate Fraud Investigation
Rekubit View
Date:2025-04-09 00:46:27
ExxonMobil lost its appeal on ChainkeenTuesday to keep records held by its auditors away from the New York attorney general’s climate fraud probe.
The documents could afford a candid—and perhaps damaging—glimpse into Exxon‘s private calculations of the business risks posed by climate change. They could contain anything from a smoking gun email to plodding, yet revealing, discussions related to Exxon’s posture on global warming, including whether the company was adequately calculating climate change risks for investors. Exxon still has another opportunity to appeal.
Investigators for state Attorney General Eric Schneiderman subpoenaed PricewaterhouseCoopers records pertaining to Exxon’s assessment of climate change as part of an investigation into Exxon that was opened in 2015.
Exxon fought to have the subpoena voided, arguing the records were privileged communications with its auditor and should be kept from the eyes of investigators. The oil giant, headquartered in Dallas, based its argument on a Texas law that grants a privilege to auditors and clients much like that between a lawyer and client.
A state court judge agreed with Schneiderman’s office that there was no such protection afforded Exxon under New York law and ordered the documents handed over last year. Exxon appealed that decision.
The appeals court, which had been considering the case since a hearing in March, rejected Exxon’s argument.
“In light of our conclusion that New York law applies, we need not decide how this issue would be decided under Texas law,” the two-page decision said.
Exxon did not respond to a request for comment.
Caroline Nolan, a spokeswoman for PwC, said the company had no comment.
The accounting firm, which has expertise in climate-related risks faced by fossil fuel companies, has remained neutral in the legal fight but has honored Exxon’s request not to turn over documents pending the outcome of the litigation.
Exxon has been fighting investigations by Schneiderman and Massachusetts Attorney General Maura Healey both in federal court and state courts.
Schneiderman opened his financial fraud investigation of Exxon in November 2015 by subpoenaing decades of records related to Exxon’s history of research into and knowledge of climate change. The investigation revolves around whether the company misled shareholders and the public about the risks of climate change.
The attorney general followed up with a subpoena to PwC nine months later seeking documents related to the auditors’ work for the oil giant. Records sought under the subpoena include documents about accounting and reporting of oil and gas reserves, evaluation of assets for potential impairment charges or write-downs, energy price projections and projected cost estimates of complying with carbon regulations.
Attorneys for Exxon argued that the judge’s ruling in October to force PwC to surrender documents “eviscerates” the accountant-client privilege afforded by the laws of Texas, where Exxon is headquartered.
New York investigators disagreed and argued that PwC should feel a moral obligation to cooperate. “As a certified public accountant, PwC ‘owes ultimate allegiance to [a] corporation’s creditors and stockholders, as well as to the investing public,’” the attorney general’s office responded.
Exxon could file additional appeals up to the New York Supreme Court or allow PwC to comply with the subpoena.
While it is unclear what Exxon’s next move may be related to the PwC documents, the company is also asking a judge to seal five subpoenas issued by Schneiderman’s office in connection with its investigation, which has grown to include missing emails from former Exxon CEO Rex Tillerson, now U.S. secretary of state.
The attorney general’s office disclosed last week that it has expanded its probe to determine whether Exxon may have destroyed emails from Tillerson’s “Wayne Tracker” email alias. Investigators are trying to determine why several weeks of emails from that account are now missing. As part of that widening investigation, the attorney general’s office revealed that it has subpoenaed a number of Exxon officials.
Exxon offered few clues in its request to the New York judge overseeing the case as to why the documents and the arguments by company lawyers justifying the sealing must remain secret.
veryGood! (86)
Related
- How to watch new prequel series 'Dexter: Original Sin': Premiere date, cast, streaming
- Some states are restricting abortion. Others are spending millions to fund it
- Georgia police department apologizes for using photo of Black man for target practice
- How to protect yourself from poor air quality
- Most popular books of the week: See what topped USA TODAY's bestselling books list
- Clean Energy Could Fuel Most Countries by 2050, Study Shows
- Testosterone is probably safe for your heart. But it can't stop 'manopause'
- How a Brazilian activist stood up to mining giants to protect her ancestral rainforest
- Global Warming Set the Stage for Los Angeles Fires
- The hospital bills didn't find her, but a lawsuit did — plus interest
Ranking
- NHL in ASL returns, delivering American Sign Language analysis for Deaf community at Winter Classic
- How to protect yourself from poor air quality
- In post-Roe Texas, 2 mothers with traumatic pregnancies walk very different paths
- Locust Swarms, Some 3 Times the Size of New York City, Are Eating Their Way Across Two Continents
- Federal Spending Freeze Could Have Widespread Impact on Environment, Emergency Management
- Government Think Tank Pushes Canada to Think Beyond Its Oil Dependence
- One year after Roe v. Wade's reversal, warnings about abortion become reality
- It's time to have the 'Fat Talk' with our kids — and ourselves
Recommendation
Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Triathlon
The Best Deals From Nordstrom's Half-Yearly Sale 2023: $18 SKIMS Tops, Nike Sneakers & More 60% Off Deals
2022 was the worst year on record for attacks on health care workers
The winners from the WHO's short film fest were grim, inspiring and NSFW-ish
Moving abroad can be expensive: These 5 countries will 'pay' you to move there
Energy Department Suspends Funding for Texas Carbon Capture Project, Igniting Debate
In Dozens of Cities East of the Mississippi, Winter Never Really Happened
Canada's record wildfire season continues to hammer U.S. air quality