On October 12, 2005, the plaintiffs filed a Notice of Appeal. The appeal is currently pending in the U.S. Court of Appeals for the Third Circuit.
According to a press release dated October 10, 2005, in an opinion by Wolfson, U.S.D.J.; filed September 14, 2005. DDS No. 50-7-1623. Plaintiffs' allegations regarding defendant's failure to recognize impairments based on the collapse in oil prices relate to conduct that occurred prior to the merger and should have been known before then, and the claims under § § 10(b) and 14(a) are barred under the one-year discovery limitations period; the lengthened limitations period under Sarbanes-Oxley does not apply; plaintiffs also have failed to satisfy PSLRA's requirement to specify why the statements in the SEC filings were misleading.
The complaint alleges that Exxon and its CEO violated Sections 14(a) and 14 (e) of the Securities Exchange Act of 1934. More specifically, the complaint alleges that during the Class Period the defendants issued materially false and misleading financial statements contained in a proxy filed with the Securities and Exchange Commission that, inter alia, overstated the company 's financial condition by inflating revenue in violation of General Accepted Accounting Principles. In particular, plaintiff alleges that the proxy and accompanying materials failed to account for impaired assets. Plaintiff seeks to recover on behalf of all those who purchased or otherwise held Mobil stock and exchanged it for Exxon stock, and is represented by the Seattle law firm of Hagens Berman LLP.
According to the complaint, this action is brought pursuant to Rule 23(a) and 23(b)(3) of the Federal Rules of Civil Procedure, brought on behalf of plaintiff and all persons and entities who purchased, converted, exchanged, or otherwise acquired the common stock of Mobil whose shares were exchanged for shares of Exxon Mobil via a merger transaction approved by shareholders on May 27, 1999, pursuant to a Proxy Statement. The merger transaction was finalized on November 30, 1999.