Federal judge dismisses Exxon suit against anti-fossil fuel shareholder activist group

A federal judge has dismissed a lawsuit against an anti-fossil fuel investor activist group. 

U.S. District Court for the Northern District of Texas Judge Mark T. Pittman, the New York Times reports, ruled Monday that because Arjuna Capital had withdrawn its shareholder proposal and swore it wouldn’t pursue similar proposals in the future, there was no reason to allow the case to go forward. 

ExxonMobil filed the lawsuit in January against Arjuna, which has aboutg $500 million in assets under management, according to testimony from a managing partner, and the Amsterdam-based grassroots non-profit  group Follow This.

The two activist groups filed shareholder proposals asking Exxon to address its greenhouse gas emissions targets, which was similar to previously failed proposals. Pittman has previously dismissed the case against Follow This since it is based in the Netherlands. 

Exxon’s complaint argues that, unlike shareholders who invest in a company to get a return on that investment, activist shareholder groups become shareholders “solely to campaign for change through shareholder proposals that are calculated to diminish the company’s existing business.”

Arjuna withdrew its proposal and promised not to submit similar ones in the future. Exxon proceeded with the lawsuit anyway, which prompted a campaign to oust members of Exxon’s board that ultimately failed.