Montini v. Woods

Two shareholder derivative complaints were filed in the federal district court for the Northern District of Texas against directors and certain senior officers of Exxon Mobil Corporation (Exxon). Both complaints alleged that Exxon had “a well-documented history of intentionally misleading the public concerning global climate change and its connection to fossil fuel usage, as well as the impact the changing climate will have on Exxon’s reserve values and long-term business prospects.” The plaintiffs asserted claims of breach of fiduciary duty, waste, and unjust enrichment. They also sought contribution against the individual defendants in the related federal securities class action pending in the same court (should those defendants be found liable for securities violations) and sought rescission of contracts between Exxon and the individual defendants based on any violations by the individual defendants of securities laws. On May 31, the plaintiff in one of the shareholder derivative actions filed a motion to consolidate the two lawsuits and for his appointment as lead plaintiff.