The Guardian: Shell faces new damages claim: £The new suit, filed in New Jersey, names the company as well as past and current directors including chief executive Jeroen van der Veer.”: “Shell has already paid $90m to settle one lawsuit instigated by a US shareholder and related to the reclassification of its reserves.”: Tuesday January 10, 2006

Terry Macalister

Shell's reserves scandal came back to haunt the company last night after a new claim for damages was filed in the US.

Institutional investors, led by Dutch pension fund ABP, have begun a class action lawsuit against Shell for several hundred million US dollars. They are claiming compensation for losses suffered when Shell's shares fell after the company admitted overstating the size of its estimated oil and gas reserves by up to a third.

ABP had originally been part of a wider class action being brought in America on the same issue, but has decided instead to bring its own case against Shell Petroleum NV.

Responding to the filing by the 26-strong group of investors, Shell pledged "to vigorously defend itself against the action".

A Shell spokesman said the company could not comment further on the pending case or speculate on whether it will eventually be settled.

The new suit, filed in New Jersey, names the company as well as past and current directors including chief executive Jeroen van der Veer.

The wider class action against Shell is still pending in the US ensuring that the reserves scandal that started in January 2004 will continue to blight the image of the company. The reserves scandal has already cost Shell nearly $150m (£85m) in fines imposed by regulators in the UK and US and led to the dismissal of three senior executives. These included the chairman of the managing directors, Sir Philip Watts.

Shell has already paid $90m to settle one lawsuit instigated by a US shareholder and related to the reclassification of its reserves.

Sir Philip was cleared of personal wrongdoing by the Financial Services Authority in November. 

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