Jury orders Exxon to pay $15.5 billion

"We felt Exxon thought they were going to get away with this," jury foreman Joe King, a teacher, said yesterday. "We wanted to send a message that they were not, and that this corporation can't get away with doing wrong." Exxon spokesperson Bob Davis said the verdict was excessive and the company would appeal. "We did not engage in fraud, pure and simple," Davis said.

The Toronto Star
November 15, 2003

Jury orders Exxon to pay $15.5 billion
Associated Press

MONTGOMERY, Ala.—A jury has ordered Exxon Mobil Corp. to pay $11.9 billion (U.S.) in damages after finding the oil giant had cheated Alabama out of natural gas royalties.

The jury, which began deliberating Thursday, awarded $63.6 million in compensatory damages and $11.8 billion in punitive damages, a state record. The amounts total $15.5 billion (Canadian).

Jurors had to find Exxon Mobil committed fraud to return the multi-billion-dollar verdict Alabama sought. If the damages are upheld on appeal, the money would go into state coffers.

"We felt Exxon thought they were going to get away with this," jury foreman Joe King, a teacher, said yesterday. "We wanted to send a message that they were not, and that this corporation can't get away with doing wrong."

Exxon spokesperson Bob Davis said the verdict was excessive and the company would appeal. "We did not engage in fraud, pure and simple," Davis said.

The state sued Irving, Texas-based Exxon Mobil in 1999, contending the company had violated its leases for natural gas wells in state-owned waters along the Alabama coast. The state accused the company of cheating Alabama out of millions of dollars by intentionally deducting too much in expenses for operating the wells.

Exxon Mobil is the world's biggest publicly traded oil company, with Esso operations in numerous countries.


Brought to you by WikidFranchise.org

Risks: Big Oil, Fraud, United States, 20031115 Jury orders

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License