Investors sue Shell over stock losses

A group of major shareholders is suing Royal Dutch Shell PLC for several hundred million dollars in damages after the company’s 2004 oil reserves accounting scandal, their lawyers said Jan. 9. The group of 26 institutional investors represents up to 5 percent of Shell’s stock, and is led by Dutch pension fund ABP — the world’s second-largest pension fund by assets. The investors say they should be compensated for losses suffered when Shell’s stock fell after the company admitted overstating the size of its estimated oil and gas reserves by up to 33 percent.

According to the filing, Shell made “materially false and misleading statements” that caused the investors “to sustain substantial losses.”

A Shell spokeswoman said the company “contests these claims and will vigorously defend itself against the action.”

The reserves scandal cost Shell almost $150 million in fines imposed by U.S. and British regulators and led to the dismissal of three senior executives.

Shell has already paid $90 million to settle one U.S. shareholder lawsuit related to the writedown of its reserves.

Spokeswoman Bernadette Cunnane said the company couldn’t comment further on the pending case or speculate on whether it will eventually be settled.

The new suit, filed in Newark, N.J., names the company as well as past and current executives including current Chairman Jeroen van der Veer.

Shell shares were up 0.8 percent at $32.71 in afternoon trading in Amsterdam.

—The Associated Press