Exxon Mobil Corp. XOM filed a federal lawsuit Monday against California Attorney General Rob Bonta and environmental groups, alleging defamation of its advanced plastics recycling initiatives, as the oil giant pushes forward with significant investments in recycling technology.
What Happened: Filed in Beaumont, Texas, the lawsuit claims Bonta acted in concert with law firm Cotchett, Pitre & McCarthy, which has connections to Australian billionaire Andrew Forrest’s Minderoo Foundation. The foundation controls Fortescue, a competitor in low-carbon solutions, Reuters reported.
The legal action comes as Exxon advances a $200 million expansion of its advanced recycling capabilities in Texas. The technology breaks down hard-to-recycle plastics at the molecular level for reuse, part of the company’s broader sustainability strategy.
“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 stated in its complaint, seeking undisclosed damages and retractions.
Why It Matters: The California Department of Justice defended its position, calling the lawsuit “another attempt from ExxonMobil to deflect attention from its own unlawful deception.” This follows Bonta’s 2023 lawsuit against Exxon over alleged decades-long deception about recycling limitations.
The legal battle unfolds as Exxon pursues ambitious growth targets, including a $20 billion earnings boost by 2030 and $30 billion in lower-emissions investments. The company recently announced plans for $20 billion in annual share repurchases for 2025-2026, supported by projected surplus cash of $165 billion.
Wall Street maintains a positive outlook on Exxon, with analysts setting an average price target of $127.96, representing a potential upside from current trading levels of around $108.
The company trades at a price-to-earnings ratio of 13.54 and offers a dividend yield of 3.64%, according to data from Benzinga Pro.
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