Exxon SEC Probe Highlights Concerns Over Inflated Shale Reserves

January 15, 2021 – Media Mention

Herrick partner and co-chair of its Securities Litigation and Enforcement Department, Arthur Jakoby, was quoted by Bloomberg in an article discussing the SEC’s probe into Exxon Mobil Corp. and the allegations that the company has inflated the value of key shale assets.  

“The SEC is cracking down on the overvaluation of these type of hard-to-value assets,” said Arthur, “It’s a very easy way to pump up the price of one stock, especially oil and gas companies using estimates for what they have in the ground.”

“It‘s not a simple investigation because assets can be valued in many different ways,” Jakoby noted. “The SEC will be looking for a smoking gun showing that management pushed for an overvaluation.”