Fossil Fuel Fraud

Abstract

In some recent climate litigation cases, plaintiffs have added a claim for common law fraud, in addition to the more traditionally pursued claims for nuisance, negligence, and trespass. Fraud claims against fossil fuel companies center on the decades-long campaign of climate change doubt that was organized, funded, and carried out by oil, gas, and coal industry leaders, as well as public relations firms and industry advocacy groups working on their behalf. But while the doubt campaign certainly fits the fraud mold—a purposeful effort to mislead for profit—because it was aimed at defrauding the public at large, rather than defrauding a particular individual—it is not the kind of deceptive scheme that the fraud laws are good at addressing. The fraud laws, by their very nature, apply most naturally to personal frauds. Impersonal frauds aimed at millions, like that carried out by the fossil fuel industry, are mostly ignored (and thereby allowed) by law. Moreover, plaintiffs suing fossil fuel companies face unique challenges. This Article argues that this gap in the law, where the largest and most destructive frauds are generally ignored, should be closed. Until it is, it will continue to unfairly deprive those harmed by climate change of the opportunity to seek redress for injuries caused by the fossil fuel companies’ purposeful deceit of the public.

Keywords: oil, gas, fossil fuels ,climate change denial, fraud on the public, disinformation

JEL Classification: K13,K32