California targets Big Oil profits in climate change lawsuit

California AG Targets Oil Companies Over Alleged Climate Deception

In a significant legal move, California's attorney general is seeking to compel major oil corporations to relinquish profits that the state claims were earned through misleading consumers about their contribution to climate change. This action aligns with a recently enacted state law allowing the attorney general to pursue profits amassed by firms engaged in unfair competition and false advertising.

The lawsuit, which was originally filed last year against prominent energy companies including Exxon Mobil, Chevron, Shell, BP, ConocoPhillips, and the oil industry trade group American Petroleum Institute (API), now encompasses this remedy known as disgorgement. Filed in San Francisco state court, the suit alleges that these companies have inflicted tens of billions of dollars in damages and accuses them of public deception. In response, API has dismissed the lawsuit as unfounded.

"This ongoing, coordinated campaign to wage meritless, politicized lawsuits against a foundational American industry and its workers is nothing more than a distraction from important national conversations and an enormous waste of taxpayer resources," stated Ryan Meyers, API General Counsel. He further contended that climate policy should be a matter for congressional debate rather than judicial decisions.

Exxon, Chevron, Shell, BP, and ConocoPhillips have not yet commented on the recent filing. The development comes shortly after a call from United Nations Secretary-General Antonio Guterres for a ban on fossil fuel advertising, likening it to restrictions on tobacco and other harmful products.

Amidst this backdrop, oil and gas companies have been actively countering pressure from activist shareholders advocating for enhanced corporate climate responsibility. Concurrently, some U.S. lawmakers are intensifying scrutiny over whether the industry is engaging in deceitful practices.