Exxon sues California AG, environmental groups for defaming recycling efforts

By Sheila Dang and Jonathan Stempel

(Reuters) – Exxon Mobil (NYSE:) 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 long 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 and the activists of disparaging Exxon’s advanced recycling technology. Exxon accused Bonta of acting in concert with Australian business rivals of the oil giant.

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.

The attorney general’s office did not immediately respond to a request for comment. 

“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.