by E&E Legal President Craig Richardson
As Appearing in the Washington Examiner
The oil-rig chasers are at it again. New York Attorney General Barbara Underwood recently filed suit against ExxonMobil, alleging the energy company failed to account for the real future cost of complying with greenhouse-gas emissions regulations, thereby artificially inflating the valuation of its stock.
The allegation is bogus and, as New York University School of Law professor Richard A. Epstein says in a recent Forbes column, “Nothing could be further from the truth.”
On the face of it, how can any company guess exactly what future regulatory costs will be? It’s an impossible proposition. The lawsuit against Exxon, and those like it, are frivolous and need to stop. They are expensive to defend, and these costs are not absorbed by any of the companies, they are simply passed along to consumers in the form of higher prices.