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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…

Exxon Corp. v. Alabama (Natural Gas Royalties)

“In December 2000, a jury in the 15th Judicial Circuit Court of Montgomery County, Alabama, returned a verdict against the Corporation in a dispute over royalties in the amount of $88 million in compensatory damages and $3.4 billion in punitive damages in the case of Exxon Corporation v. State of Alabama, et al. The verdict was upheld by the trial court in May 2001. In December 2002, the Alabama Supreme Court vacated the $3.5 billion jury verdict. The case was retried and in November 2003, a state district court jury in Montgomery, Alabama, returned a verdict against Exxon Mobil Corporation. The verdict included $63.5 million in compensatory damages and $11.8 billion in punitive damages. In March 2004, the district court judge reduced the amount of punitive damages to $3.5 billion.” In November 2007, the Alabama Supreme Court struck down the punitive damages award. The court ruled that the state did not prove that Exxon Mobil committed fraud and was therefore not entitled to punitive damages. The court also reduced compensatory damages to $51.9 million plus interest, which amounted to an additional $70 million.

Misconduct Type
Defective Pricing
Enforcement Agency
State/Local
Contracting Party
None
Court Type
Civil
Disposition
Judgment Against Defendant
Date of Decision
5/12/2005
Contractors Involved Penalty
Total
Exxon Mobil $121,000,000
Further Information Released
AL Supreme Court Opinion 11/8/2007
Exxon Mobil Press Release 11/8/2007
SEC 10-K (p. 14 of 48) 6/21/2006

Federal Contractor Misconduct Database