Exxon Mobil Ordered to Pay $6.75 Billion in Valdez Case

The oil spilled more than 14 years ago, but the fallout continues. A federal judge has ordered Exxon Mobil to pay $4.5 billion in punitive damages and $2.25 billion in interest in relation to the Exxon Valdez oil tanker spill that severely damaged the Alaskan environment.

Exxon Mobil, the largest publicly traded oil company in the world, will most likely appeal the decision, a company lawyer told Reuters, but no official word came from the company yesterday.

The punitive number was once $5 billion but was reduced to $4 billion and now stands at $4.5 billion by U.S. District Court Judge Russell Holland in Anchorage. The U.S. Supreme Court recently ruled to limit punitive damages.

Exxon Mobil has already paid $300 million voluntarily to the more than 11,000 people and businesses in Alaska who were affected by the worst oil spill in U.S. history. More than 11 million gallons poured from the Valdez, affecting more than 1,000 miles of coastline and killing countless animals and birds, Reuters reported.

On news of the judgment, Exxon Mobil shares fell nearly 1 percent to $40.81 yesterday.

Editorial Note: On March 24, 1989, the tanker Exxon Valdez grounded on Bligh Reef in the upper part of Prince William Sound. The tanker was carrying approximately 53 million gallons of crude oil. Within a few days, it had spilled almost 11 million gallons of the oil into Prince William Sound. Here are some photos from this spill.

You may like these other stories...

By Jason Bramwell Government leaders of eight of the world's largest economies pledged on June 18 to take a tougher stance on fighting tax evasion. The Group of Eight (G8) leaders, who met in Northern Ireland,...
By Jason BramwellAttorney General Eric Holder is scheduled to testify on May 15 before the House Judiciary Committee, one day after he announced the Justice Department has opened a criminal investigation of the IRS for...
By Jason BramwellPresident Barack Obama says he will not tolerate political bias at the IRS and promised to get to the bottom of the agency's admitted targeting of conservative groups, according to a May 13 article in...

Already a member? log in here.

Upcoming CPE Webinars

Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 26
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.