8-KOther Events

EXXON MOBIL CORP 8-K Report, Corporate Update (Jul 7, 2011)

Filed July 7, 2011For Securities:XOM

Summary

Exxon Mobil Corporation (XOM) reported on July 7, 2011, an 8-K filing detailing a significant jury verdict against the company in Maryland. A state district court jury in Baltimore County awarded plaintiffs approximately $497 million in compensatory damages and $1.045 billion in punitive damages related to a gasoline leak at a suburban Baltimore service station. The jury found that ExxonMobil had fraudulently misled residents regarding the incident, its discovery, and the extent of groundwater contamination. ExxonMobil strongly disputes the verdict, stating that it is not supported by the evidence and that the damages awarded are excessive and unconstitutional. The company intends to appeal the decision once a final judgment is entered. This verdict follows a previous trial concerning the same leak where a jury awarded compensatory damages but not punitive damages; that prior decision is also currently under appeal.

Key Highlights

  • 1A jury in Baltimore County, Maryland, returned a verdict against Exxon Mobil Corporation on June 30, 2011.
  • 2The verdict awarded approximately $497 million in compensatory damages and $1.045 billion in punitive damages.
  • 3The case involved an accidental 26,000-gallon gasoline leak at a suburban Baltimore service station.
  • 4The jury found ExxonMobil had fraudulently misled plaintiff-residents about the leak and groundwater contamination.
  • 5ExxonMobil believes the verdict is unjustified by the evidence and the award amount is excessive and unconstitutional.
  • 6The company plans to appeal the decision after the final judgment is entered.
  • 7A prior trial concerning the same leak resulted in compensatory damages but no punitive damages, and that decision is also on appeal.

Frequently Asked Questions

The primary event reported is a jury verdict against Exxon Mobil Corporation in Maryland, awarding significant compensatory and punitive damages related to a gasoline leak and alleged fraudulent misrepresentation.

ExxonMobil believes the verdict is not justified by the evidence and considers the damages award to be grossly excessive and unconstitutional. The company intends to appeal the decision.

The jury awarded approximately $497 million in compensatory damages and $1.045 billion in punitive damages, for a total of approximately $1.542 billion.

Yes, a prior trial involving the same gasoline leak also resulted in a verdict for the plaintiff-residents awarding compensatory damages, but the jury decided against punitive damages in that instance. That prior decision is also currently under appeal.