A federal decide in Texas on Monday dismissed a lawsuit that Exxon Mobil had filed in opposition to an activist investor, Arjuna Capital, over a shareholder proposal that referred to as for cuts within the oil large’s greenhouse fuel emissions.
Judge Mark T. Pittman of U.S. District Court for the Northern District of Texas dominated that as a result of Arjuna had withdrawn its proposal and had vowed to not submit related proposals, Exxon’s declare was moot.
“The pattern of shareholder activism on this nation isn’t going anyplace,” Judge Pittman wrote, however he added that “the court docket can’t advise Exxon of its rights with no reside case or controversy to set off jurisdiction.”
Exxon sued Arjuna and one other investor, Follow This, in January to cease their nonbinding decision from going to a vote of shareholders. A month earlier, Arjuna had filed a proposal for the decision, which referred to as on Exxon to speed up its plans to scale back its carbon emissions “and to summarize new plans, targets and timetables,” in response to Exxon’s criticism. Follow This then joined in help, the criticism stated.
In its criticism, Exxon stated the proposal “doesn’t search to enhance ExxonMobil’s financial efficiency or create shareholder worth.”
“Defendants’ overarching goal is to drive Exxon Mobil to vary the character of its peculiar enterprise or to exit of enterprise fully,” the corporate stated.
Judge Pittman dismissed Follow This, which is predicated within the Netherlands, from the lawsuit in May however allowed the case in opposition to Arjuna to proceed.
Arjuna withdrew the proposal and moved for a dismissal of the lawsuit, which the decide denied “as a result of the proposal’s withdrawal didn’t foreclose the identical conduct shifting ahead.” Arjuna then promised to not put forth related proposals and stated its pledge “forecloses even the remotest likelihood of one other proposal” associated to Exxon’s carbon emissions.
Judge Pittman’s ruling adopted a listening to held on Monday to find out whether or not Arjuna’s promise made Exxon’s criticism moot.
Alain Delaquérière contributed analysis.
