California filed a lawsuit against ExxonMobil XOM on Monday, accusing the oil giant of misleading the public about the recyclability of plastics.
What Happened: The lawsuit, filed in San Francisco County Superior Court, alleges that ExxonMobil engaged in a “decades-long campaign of deception” regarding plastic recycling. California Attorney General Rob Bonta stated that ExxonMobil falsely promoted all plastics as recyclable, contributing to global plastic pollution, reported The Washington Post.
"For decades, ExxonMobil has been deceiving the public to convince us that plastic recycling could solve the plastic waste and pollution crisis when they clearly knew this wasn't possible," Bonta said in a statement.
The legal action seeks unspecified damages and marks the first attempt by a U.S. government official to hold an oil and gas company accountable for misleading claims about plastics. Bonta’s office launched an investigation in April 2022, issuing a subpoena to ExxonMobil as part of the probe.
The 147-page complaint alleges that ExxonMobil’s efforts to push plastic recycling violate state laws on water pollution, unfair competition, and false advertising. The lawsuit also claims that ExxonMobil’s “advanced recycling” program is misleading, with over 90% of plastic waste processed becoming fuel instead of recycled plastic.
The legal action is part of a broader effort to address plastic pollution. On Sunday, Gov. Gavin Newsom signed legislation banning plastic shopping bags in California by 2026. Environmental advocates have praised the lawsuit, calling it a significant step against the plastics industry.
Why It Matters: ExxonMobil’s recent activities highlight its efforts to pivot towards more sustainable practices.
On Sept. 13, ExxonMobil announced a partnership with Mitsubishi Corporation for a low-carbon hydrogen project at its Baytown, Texas facility. The project aims to produce low-carbon hydrogen and ammonia by capturing 98% of CO2 emissions.
Price Action: Exxon Mobil Corp stock closed at $117.36 on Monday, up 1.81%, for the day. In after-hours trading, the stock dipped 0.10%. Year to date, Exxon Mobil’s stock has seen a significant increase of 14.65%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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