Shell sued by Dutch pension funds
Oil giant Shell is being sued by 26 Dutch pension funds as the investors try to recover losses they blame on the company overstating its crude reserves.
The investors hold about 5% of Shell's shares and are reported to be seeking $150m (£85m) in damages.
The legal action is the latest to hit Shell after the firm admitted it had overstated reserves by more than 20%.
Royal Dutch Shell shares tumbled after the news broke at the start of last year, causing great investor anger.
Fight the claims
In the selling blitz that followed the announcement, $15bn was knocked off the company's market value.
Shell already has agreed to pay out some compensation to settle other legal actions, and last year merged its Dutch and UK operations in an effort to revamp its business and win back investor trust.
The latest lawsuit was brought by pension funds, including Stichting Pensioenfonds ABP, one of Europe's biggest.
It was filed in New Jersey and names both current and former Shell staff, including chief executive Jeroen van der Veer.
Shell is accused of making "materially false and misleading statements".
The oil company denied the claims made in the latest lawsuit and said it would "vigorously" defend itself.
A spokeswoman said that Shell could not comment further on the case.
Oil giant Shell is being sued by 26 Dutch pension funds as the investors try to recover losses they blame on the company overstating its crude reserves.
The investors hold about 5% of Shell's shares and are reported to be seeking $150m (£85m) in damages.
The legal action is the latest to hit Shell after the firm admitted it had overstated reserves by more than 20%.
Royal Dutch Shell shares tumbled after the news broke at the start of last year, causing great investor anger.
Fight the claims
In the selling blitz that followed the announcement, $15bn was knocked off the company's market value.
Shell already has agreed to pay out some compensation to settle other legal actions, and last year merged its Dutch and UK operations in an effort to revamp its business and win back investor trust.
The latest lawsuit was brought by pension funds, including Stichting Pensioenfonds ABP, one of Europe's biggest.
It was filed in New Jersey and names both current and former Shell staff, including chief executive Jeroen van der Veer.
Shell is accused of making "materially false and misleading statements".
The oil company denied the claims made in the latest lawsuit and said it would "vigorously" defend itself.
A spokeswoman said that Shell could not comment further on the case.
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Re: Shell admitted it had overstated crude reserves by more than 20%.
Thu, January 12, 2006 - 11:18 PMThis is another example of the evils of corporations. They claim that they are doing things for their shareholders, but even the shareholders get ripped off. -
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Re: Shell admitted it had overstated crude reserves by more than 20%.
Fri, January 13, 2006 - 6:05 PMI don't think it that corporations are evil really. They just exist to make a profit, there is no emotion or morality to that. The asshats running them on the otherhand, asshats who cheat shareholders, yeah. Evil motherfuckers. Shareholders tho need to step up. More shareholder involvement and oversight might make the stewards of these corporate shibboleths more responsable (sp?).
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