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HOUSTON (Reuters) – A U.S. judge on Monday dismissed a lawsuit Exxon Mobil (NYSE:) filed a lawsuit against activist group Arjuna Capital after the group agreed not to pursue future proxy filings at the company’s annual meetings.
The lawsuit by the largest U.S. oil company has sparked concern among activists and public pension investors who argue it will muzzle the debate between shareholders and public companies.
US District Judge Mark Bittman ruled that Exxon’s claim was no longer valid after Arjuna “unconditionally and irrevocably” agreed not to make a future proposal regarding Exxon’s greenhouse gas emissions.
“The court cannot advise Exxon on its rights without a live case or controversy to raise jurisdiction,” Pittman wrote, and Arjuna’s pledge not to file a similar decision in the future “negated any case or controversy.”
Pittman’s dismissal was without prejudice, meaning Exxon could refile its case in the future.
Arjuna and Follow This, a Netherlands-based environmental group, have proposed a resolution calling on shareholders to demand that the oil major set new targets for cutting some greenhouse gas emissions.
Exxon filed a lawsuit against the couple in January and refused to drop the case after they agreed not to file the petition, citing the “possibility” that the two could file similar decisions in the future. Pittman last month dropped Follow This from the case because the group was outside the jurisdiction of his court.
