$11.9 Billion Verdict for the State of Alabama Against Exxon for Royalty Fraud

State of Alabama vs. ExxonMobil | Montgomery County, Alabama | CASE NO. CV-99-2368

Cunningham Bounds was retained by the State of Alabama Department of Conservation and Natural Resources to assert claims of royalty fraud against ExxonMobil. The first case to be tried resulted in a jury verdict in favor of the State for $87.7 million in compensatory damages and $3.42 billion in punitive damages. On December 20, 2002, the Alabama Supreme Court reversed the jury's verdict and remanded the case for a new trial upon concluding the jury should not have been permitted to view an internal memo from an Exxon lawyer outlining its plans to underpay the State. The retrial took place October through November 2003 and resulted in a verdict for the State and a judgment in the amount of $63 million compensatory damages (totaling $102 million with interest) and $11.8 billion punitive damages.