A participant in the Exxon Mobil
Savings Plan has filed a complaint on behalf of himself and other
similarly situated current and former employees of Exxon Mobil
Corporation, or its predecessor companies, alleging plan fiduciaries
breached their fiduciary duties under the Employee Retirement Income
Security Act (ERISA) by continuing to offer company stock when it was no
longer prudent to do so.
The action was brought under Section
502 of ERISA to recover “many millions of dollars of damage suffered in
their retirement accounts due to breaches of fiduciary duties owed to
[participants],” the complaint says.
The plaintiff claims
defendants’ breaches of fiduciary duty occurred when they knew or should
have known that Exxon’s stock had become artificially inflated in value
due to fraud and misrepresentation, thus making Exxon stock an
imprudent investment under ERISA and damaging the plan and those plan
participants who bought or held Exxon stock.
The complaint states
that throughout the class period, Exxon repeatedly highlighted the
strength of its business model and its transparency and reporting
integrity, particularly with regard to its oil and gas reserves and the
value of those reserves. NEXT: Misrepresentations regarding climate change