Exxon Loses Appeal to Keep Auditor Records Secret in Climate Fraud Investigation

xxonMobil lost its appeal on Tuesday to keep records held by its auditors away from the New York attorney general's climate fraud probe. The documents could afford a candid—and perhaps damaging—glimpse into Exxon's private calculations of the business risks posed by climate change. They could contain anything from a smoking gun email to plodding, yet revealing, discussions related to Exxon's posture on global warming, including whether the company was adequately calculating climate change risks for investors. Exxon still has another opportunity to appeal.Investigators for state Attorney General Eric Schneiderman subpoenaed PricewaterhouseCoopers records pertaining to Exxon's assessment of climate change as part of an investigation into Exxon that was opened in 2015.Exxon fought to have the subpoena voided, arguing the records were privileged communications with its auditor and should be kept from the eyes of investigators. The oil giant, headquartered in Dallas, based its argument on a Texas law that grants a privilege to auditors and clients much like that between a lawyer and client.A state court judge agreed with Schneiderman's office that there was no such protection afforded Exxon under New York law and ordered the documents handed over last year. Exxon appealed that decision.