News & Insights


May 1, 2023 - Source: Pratt's Energy Law Report

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.