New Corporate Fraud Lawsuits Filed in October
Corporate fraud is not just limited to such issues as identity theft, insurance fraud, and securities fraud. Today, companies are also being accused of promoting deception in general when it comes to their investors. Below, we describe two recent lawsuits filed in connection with corporate fraud allegations to demonstrate how they can involve damages not only due to consumers, but also shareholders and others:
Pet Food Fraud Results in $4.5 Million Paid Out in Restitution
In late October, the manager of Wilbur-Ellis plead guilty in federal court to corporate fraud in connection with a multi-million dollar conspiracy to sell adulterated ingredients and misbranded food into interstate commerce (i.e. to pet food manufacturers), as well as money laundering. The company has already paid out more than $4.5 million in restitution thus far in connection with the charges and will also receive five years’ probation. According to the FBI, the company essentially “charg[ed] filet mignon prices for ground beef… at the expense of unsuspecting consumers.”
In pleading guilty, the company’s manager admitted to shipping adulterated ingredients and products to various manufacturers and co-packers over a six-year timespan, as well as falsely-labeling the products as single-ingredient pet food products. This not only included direct sales by Wilbur-Ellis to pet food companies and manufacturers, but also to commodities brokers and distributors whose customers included pet food companies and manufacturers.
Exxon Sued Over Climate Change-Related Fraud
One state Attorney General recently filed a corporate fraud lawsuit against oil giant ExxonMobil, accusing the company of defrauding investors, threatening the economy, and violating consumer and investor protection laws and regulations. The complaint’s allegations are numerous, and include:
- Deceptive advertising to consumers concerning its role in fossil fuels (which includes allegations that the company has been engaging in “greenwashing” marketing campaigns that falsely misleads people into believing that they participate in climate action and clean energy research as a “corporate steward”);
- Intentionally misleading investors about climate-related risks to its business;
- Engaging in misrepresentations in the use of proxy costs analyses and projections of future demands when it comes to gas and oil;
- Misleading its investors regarding how it incorporated climate change into its business and financial planning; and
- Hiding from investors long-held knowledge that fossil fuels would have a negative impact on the climate and pose a financial risk to the global economy and Exxon’s business; amongst others.
If You Have Been the Victim of Corporate Fraud in Florida, Contact Our Experienced Civil Litigation Attorneys
Companies commit fraud when they misrepresent facts that others rely on. Our Orlando civil litigation attorneys fight to hold these wrongdoers accountable for the harm that they cause others; not only consumers, but other parties that are affected, such as shareholders. Contact us at the Baez Law Firm today to find out more.