Latham Wins Complete Defense Jury Verdict for ExxonMobil in Section 10(b) Securities Class Action
On May 14, 2026, Latham & Watkins, together with co‑counsel at King & Spalding and Paul, Weiss, secured a complete defense jury verdict for ExxonMobil and former officers in a securities class action before Judge Ed Kinkeade in the US District Court for the Northern District of Texas. The case challenged ExxonMobil’s 2015 Form 10‑K, including disclosures concerning the company’s bitumen proved reserves and production prices and costs, as well as its impairment analysis relating to its Rocky Mountain dry gas assets. The plaintiff asserted claims under Section 10(b) and Rule 10b‑5, alleging that ExxonMobil’s disclosures were materially misleading and seeking per‑share damages that would have potentially resulted in billions of dollars in aggregate damages.
The plaintiff sought to turn complex accounting judgments, reserves estimates, and required SEC oil and gas disclosures into securities fraud. The defense showed that the challenged disclosures and analyses were grounded in established internal processes, handled by experienced professionals, and supported by contemporaneous documentation and review, including by ExxonMobil’s external auditor. The defense further demonstrated that ExxonMobil’s decisions to debook the proved reserves and impair certain assets in 2016 did not make the 2015 disclosures false or misleading and that the plaintiff failed to prove that anyone intended to commit fraud, as reinforced by testimony from ExxonMobil witnesses who stated that they stood by their decisions.
After a three‑week trial that began on April 28, the jury returned a unanimous defense verdict for ExxonMobil and its former officers. The result is another significant trial win in a high‑stakes securities class action (which are rarely tried, but Latham has been involved in almost all those that have been tried in the last several years). The jury’s verdict is a strong vindication of ExxonMobil’s position that the plaintiff’s securities‑fraud theory was not supported by the evidence. More broadly, the verdict reinforces the distinction between hindsight disagreement with business or accounting judgments and proof of securities fraud.
The Latham trial team was led by partners Scott Thomas, Sarah Tomkowiak, and Heather Waller, and associate Taz Jones, with assistance from Meryn Grant and Laura Bladow.