US federal judge allows class action lawsuit against Shell to proceed

AFX News Limited
August 17, 2005

A US federal judge has ruled that a class action lawsuit for securities fraud against the Royal Dutch Shell PLC can now proceed. Several Shell shareholders filed the case after a massive fall in the company's share price following its admission early last year that it overbooked oil and gas reserves by a fifth.

In his 147-page decision, US district court chief judge John Bissell said the plaintiffs 'adequately' provided reason for the court to look at the claims. Bissell also said that Shell, even if it is headquartered in the Netherlands, does not exempt it from being accountable in the US. Just as foreign stock exchange data and information is pertinent to United States investors, the reverse is also true,' Bissell said. The case was filed in New Jersey where Shell runs several gasoline distribution terminals. The date of the trial has yet to be announced.

A Shell spokeswoman in London said the decision 'reflects a ruling at an early procedural phase of the case that presents the court's views on the scope of its statutory jurisdiction and the adequacy of plaintiffs' complaint.' '(It) does not reflect whether plaintiffs ultimately will be able to prove any of the claims they have alleged,' she stressed....