Do Over: Investor Wants Chevron Shares…At 2004 Price

by Todd Shriber

Proving that we still live in a litigious society, an intrepid former Detroit-area lawyer is suing Chevron (CVX) for $100,000 worth of shares in the U.S. oil giant. Here’s the rub: He wants the shares at 2004 prices.

Perry Christy claims he opened an online dividend reinvestment plan with Chevron and its stock transfer agent in 2004, requesting that $100,000 be deducted from his bank account, according to The Associated Press. The problem is that transfer allegedly never occurred. Christy’s records indicate an account was created, but no funds departed his bank account to purchase Chevron shares, the article said.

Christy was certainly buying on the cheap as Chevron shares are up more than 140% since early 2004. If the purchase had been made and the dividends reinvested, Christy’s $100,000 investment would be worth $250,000 today, AP said. Those are stellar results, but not numbers that Christy has realized.

A quick run through of Chevron’s investor relations website and that of its transfer agent, Bank of New York Mellon (BK), actually shows the dividend reinvestment process for investors buying shares of Chevron is pretty easy, whether it is done online or through other means.

Of course this issue begs the question: What took Christy so long to get around to filing a legal complaint about his Chevron stock being purchased? As the article notes, the statute of limitations is about to run out. Christy said he never got a satisfactory answer as to why his money had not been invested, according to the AP.

Perhaps the real question that needs to be asked is if Chevron shares had fallen over the past seven years, would Christy still be bringing this lawsuit.

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