AG investigates what Exxon knew about climate change risks

While Exxon was said to have discontinued its funding of these research centers, a report in the Guardian using information from Greenpeace, said that the funding continued to legislators who denied climate science and an ultra-conservative lobby group that works to weaken environmental regulations.

Scott Silvestri, an Exxon spokesman, said Thursday in a statement, "We unequivocally reject allegations that Exxon Mobil suppressed climate change research contained in media reports that are inaccurate distortions of Exxon Mobil's almost 40-year history of climate research". Schneiderman's office is also investigating Peabody Energy, the largest coal producer in the USA for two years over whether it completely disclosed financial risks related to the change of climate.

The investigation opens up a new front in climate litigation at a time of heightened worldwide interest and rapid changes in the oil and gas industry, which is being buffeted by low oil prices, increased public concerns over global warming, among other dynamics.

Numerous politicians, including both Democratic presidential front-runners, have called for federal investigations into Exxon, but the Securities and Exchange Commission has not yet announced any inquiries. "New York has taken the first step, now other attorneys general should follow suit to protect the rights of the American people against big polluters from lying to them about climate change and its impacts on our communities".

While investigators have been looking into what Exxon knew about climate change and what it said about it to the public and shareholders for a few time, recent investigative news reports by InsideClimate News and the Los Angeles Times made the issue "more ripe", the person said. The law applies to any company doing business in the state. The news was originally reported by the New York Times. Just like tobacco companies were charged with misinforming the public on the health perils of smoking and had to settle for billions, so can Exxon along with other oil & gas companies be held liable for similar charges for their active involvement in spreading misinformation about global warming.

"If [the attorneys general] are successful with one company, it could be like a domino effect and be successful with many others", Garfield said.

Stacks and burn-off from the Exxon Mobil refinery are seen at dusk in St. Bernard Parish, La., Friday, February 13, 2015.

Kenneth P. Cohen, vice president for public affairs at Exxon Mobil, told the Times on Thursday that the company had received the subpoena and was determining its response.

"It is unfortunate that interest groups can fuel political expediency to cause investigations to occur where there should be none", said Jacob Frenkel, a former SEC lawyer and partner at Shulman Rogers in Washington.

ExxonMobil was "the only major oil company", he said, to participate in the UN Intergovernmental Panel on Climate Change (IPCC) "since its inception, and we still are a participant". So any fraud prosecution would depend on what role executives may have had in climate denial campaigns. "There would have been a point reached where Exxon's efforts to claim that the science was uncertain would have no longer been accurate", said Latham.