Exxon sues California AG, environmental groups over attacks on recycling efforts

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By Sheila Dang and Jonathan Stempel

(Reuters) -Exxon Mobil filed a lawsuit on Monday against California Attorney General Rob Bonta and several environmental groups, court records show, accusing them of defaming and disparaging the oil giant’s advanced plastics recycling initiatives.

The lawsuit is a sign of how Exxon is increasingly fighting back against environmentalists and other critics who have brought lawsuits against the company alleging its involvement in climate change and rising greenhouse gas emissions.

Filed in federal court in Beaumont, Texas, the lawsuit accused Bonta of acting in concert with a law firm called Cotchett, Pitre & McCarthy, LLP that has ties to IEJF, an Australian non-profit controlled by billionaire Fortescue founder Andrew Forrest’s company Minderoo Foundation.

Fortescue competes with Exxon in low-carbon solutions and the energy transition sector, the lawsuit said.

Cotchett had recruited U.S. environmental groups as plaintiffs in a lawsuit against Exxon, and also contributed to Bonta’s political campaign, Exxon said.

The company is asking for undisclosed damages and a retraction of what it called defamatory statements.

A spokesperson for the California Department of Justice said: “This is another attempt from ExxonMobil to deflect attention from its own unlawful deception. The Attorney General is proud to advance his lawsuit against ExxonMobil and looks forward to vigorously litigating this case in court.”

Bonta sued Exxon last year, saying the company had engaged in decades-long deception about the limitations of recycling and asked a court to “hold ExxonMobil fully accountable for its role in actively creating and exacerbating the plastics pollution crisis.”

Exxon’s advanced recycling technology uses heat to break down plastics that are difficult to recycle to a molecular level so they can be reused.

Exxon separately sued activist investors last year after they filed a shareholder proposal on climate change. The company continued to pursue the lawsuit even after the activist investors withdrew the proposal, which raised alarm from climate advocates that the legal action would muzzle debate between shareholders and public companies. A U.S. judge threw out Exxon’s lawsuit in June.

“Instead of coming alongside efforts to support a developing technology … Defendants are repeatedly and publicly attacking ExxonMobil with false accusations of being a ‘liar’ and declarations that advanced recycling is a ‘myth’ and a ‘sham,'” Exxon said in the complaint. 

In November, Exxon said it was moving forward with a plan to spend $200 million in Texas to expand its advanced recycling capabilities.

Exxon has been selling off its California oil and gas properties and criticizing the state’s energy regulations. 

(Reporting by Jonathan Stempel in New York and Sheila Dang in Houston; Editing by Nia Williams, Chris Reese and Jamie Freed)