Following the recent lawsuit brought against it by US employees, global energy titan Shell is now facing further suits in the US from European pension investment funds over its overstated oil reserves episode in 2004.
Shell’s subsequent admission that it had mistakenly overstated oil reserves from 1999 to 2003 by a massive 41% played absolute havoc with its share prices as the sudden revelation that the oil producer was not in as good a position as it thought sent its stock tumbling.
US employees who hold shares in the company have already sued and settled for multi-millions with the Anglo-Dutch company over the damage its mistakes did to the value of their shares. Now investment funds have followed the example and instigated legal action of their own.
Twenty-six Dutch pension funds, including Stichting Pensioenfonds ABP, have issued filings against Shell. According to the BBC, the investors hold about 5% of Shell’s shares and are reported to be seeking $150 million (GBP85 million) in damages.
Shell said it would vigorously defend itself against the new filings.