Judge Dismisses New York City's Lawsuit Against Exxon, BP, Shell Over Climate Claims

New York City’s lawsuit against Exxon Mobil (XOM.N), BP (BP.L), Shell (SHEL.L), and the American Petroleum Institute (API) was dismissed on Tuesday by New York State Supreme Court Justice Anar Patel. The city alleged the companies misled the public about their fossil fuel products and commitment to renewable energy, seeking civil fines and an end to alleged deceptive practices.

Justice Patel ruled that New York City could not claim its climate-conscious residents were both aware of and misled about the impacts of fossil fuels. She found no evidence of "greenwashing," rejecting claims that the companies' statements on clean energy and sustainability misrepresented their role in climate change. Patel also deemed slogans like Exxon’s "drive cleaner, smarter and longer" as too vague to suggest deception.

The city’s 2021 lawsuit followed a federal appeals court dismissal of its attempt to hold Exxon, BP, Shell, Chevron (CVX.N), and ConocoPhillips (COP.N) accountable for global warming costs. The city argued that the companies misled consumers through ads and social media, claiming minimal investment in clean energy like wind and solar.

Nicholas Paolucci, spokesman for the city’s law department, stated, “Companies that violate the city’s consumer protection laws should be held fully accountable. New Yorkers deserve no less.” The city is now reviewing its options.

Ryan Meyers, general counsel for API, welcomed the decision, emphasizing that climate policy should be debated in Congress, not courts.

The ruling came a day after the U.S. Supreme Court allowed Honolulu's similar lawsuit against major oil companies to proceed. The case is City of New York v. Exxon Mobil Corp et al, New York State Supreme Court, New York County.

Source: Reuters