Judge tosses Exxon Mobil lawsuit against activist shareholder Arjuna over climate proposal

Exxon had sued Arjuna Capital and another shareholder, Follow This, in January over a proposal they had submitted for oil major’s May 29 annual shareholder meeting calling for the company to accelerate carbon dioxide emissions reductions.

The two activist shareholders withdrew the proposal after Exxon sued, but the oil major proceeded with its lawsuit claiming that the investors could file a similar proposal at a future shareholder meeting.

Pittman had originally denied Arjuna’s request to dismiss Exxon’s claims, echoing the oil major’s arguments, while tossing out the suit against Netherlands-based Follow This due to jurisdiction issues.

But the judge said Monday that there was no longer an issue at stake in the case after Arjuna made an “unconditional and irrevocable” pledge to ensure Exxon that it won’t file a similar proposal again.

“Arjuna was caught between a rock and a hard place,” Pittman wrote in his ruling Monday. “Arjuna is a boutique wealth management firm with offices in North Carolina and Massachusetts. Exxon is one of the largest multinational conglomerates on the planet.”

This is a developing story. Please check back for updates.