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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

U.S./European Shareholder Lawsuits Arising Out of 2004 Reserves Recategorization

In April 2007, Royal Dutch Shell agreed to pay $352.6 million, plus administrative costs, to settle a securities fraud case with investors in the Netherlands, UK, Germany, France, Sweden, Denmark, Norway and Luxembourg. The case arose after Shell admitted in 2004 it had overstated its oil and gas reserves by over 20 percent from 1997 to 2003. In June 2008, it was announced that a settlement was reached with U.S. investors. The agreement includes a settlement of approximately $80 million, with Shell also paying various fees, expenses and costs. The participants in both the European and U.S. settlements will also receive an additional payment of $35 million. See related Royal Dutch Shell instances “Employee Retirement Income Security Act Class Action,” “Shareholder Derivative Lawsuit Arising Out of 2004 Reserves Recategorization,” and “Violations of Federal Securities Laws.”

Misconduct Type
Securities
Enforcement Agency
Non-Governmental
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Eur. Settlement Announcement
4/11/2007
Contractors Involved Penalty
Total
Royal Dutch Shell PLC $483,358,000
Further Information Released
Penn. AG Press Release 8/16/2008
Settlement 8/16/2008
Shell Press Release (U.S. settlement) 4/19/2008
Shell Press Release (Eur. settlement) 7/18/2007

See also:

Federal Contractor Misconduct Database