🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Exxon Mobil loses appeal to stop climate change probes

Published 03/15/2022, 11:04 AM
Updated 03/15/2022, 03:01 PM
© Reuters. FILE PHOTO: A logo of the Exxon Mobil Corp is seen at the Rio Oil and Gas Expo and Conference in Rio de Janeiro, Brazil September 24, 2018. REUTERS/Sergio Moraes
XOM
-

By Jonathan Stempel and Nate Raymond

NEW YORK (Reuters) -A federal appeals court on Tuesday rejected Exxon Mobil Corp (NYSE:XOM)'s effort to stop Massachusetts and New York from probing whether the oil company lied to investors and the public regarding what it knew about climate change.

The 2nd U.S. Circuit Court of Appeals in Manhattan said Exxon could not sue Massachusetts' Attorney General Maura Healey in federal court because it was pursuing the same case in Massachusetts state courts.

It also said Exxon's federal case against New York Attorney General Letitia James was moot after she decided not to appeal a state judge's December 2019 dismissal of her lawsuit against the company following a non-jury trial.

Exxon argued that its federal lawsuit should continue because Healey's "viewpoint bias" violated its constitutional free speech rights under the First Amendment, while James kept defending her office's conduct and could choose to sue again.

The company had sued Massachusetts and New York in June 2016 after receiving subpoenas for documents about its understanding of climate change and communications with shareholders. It was appealing from a March 2018 dismissal of that case.

Exxon and its lawyers had no immediate comment.

Chloe Gotsis, a spokeswoman for Healey, said her office looked forward to "finally obtaining documents" from Exxon and moving their case forward.

James said she was pleased the court rejected Exxon's "baseless attempts to challenge state law enforcement efforts."

Exxon has in the last several years faced many lawsuits claiming it tried to boost public sentiment, profit and its stock price by downplaying how its fossil fuel products affected climate change and how climate regulation affected its business.

The Irving, Texas-based company has long maintained that climate change risks are real, and it wanted to be part of any solution.

© Reuters. FILE PHOTO: A logo of the Exxon Mobil Corp is seen at the Rio Oil and Gas Expo and Conference in Rio de Janeiro, Brazil September 24, 2018. REUTERS/Sergio Moraes

During oral arguments on March 9 in the Massachusetts state case, the Massachusetts Supreme Judicial Court, that state's highest court, appeared cool to Exxon's claim that Healey was illegally stifling its speech.

The case is Exxon Mobil Corp v Healey et al, 2nd U.S. Circuit Court of Appeals, No. 18-1170.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.