Securities Litigation in the Energy Sector

The current securities litigation landscape presents perilous and novel risks for public companies in the energy sector. These risks extend far beyond the stock-drop securities class actions that all public companies face. The growth in the climate-change movement and investor demand for enhanced environmen- tal, social and governance (ESG) disclosures have created a host of new, and largely untested, securities litigation risks for publicly-traded energy companies. The potential claimants are diverse and often politically motivated – they include securities class action plaintiffs, the Securities Exchange Commission (SEC), state attorneys general, activist shareholders and multiple non- governmental organizations. This article provides an overview and assessment of securities litigation risks for companies in the energy sector and concludes with practical recommendations to assist corporate decision-makers in minimizing those risks.