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Exxon Mobil Corporation (XOM - Free Report) , along with Koch Industries and the American Petroleum Institute, faced a notable setback on Monday as the U.S. Supreme Court dismissed their request to shift a climate change lawsuit filed by Minnesota Attorney General Keith Ellison from state court to federal court, per media reports.
The lawsuit, filed by Minnesota in 2020, asserts that the energy industry, including ExxonMobil, Koch and the American Petroleum Institute, employed deceptive marketing practices over several decades to downplay the risks of burning fossil fuels and undermine public understanding of climate change. According to the lawsuit, these companies were aware of the climatic impact of their fossil fuel products as early as in the 1970s and 1980s. The state contends that these entities failed to disclose these risks to the public and actively worked to undermine climate science, resulting in significant economic damages for Minnesota.
ExxonMobil, Koch Industries, and other energy companies, along with lobbying groups such as the American Petroleum Institute, had appealed to the Supreme Court to review the 8th U.S. Circuit Court of Appeals decision. They argued that federal jurisdiction was appropriate, citing the national and global significance of climate change while affirming that the lawsuit belonged to state court, where it was initially filed.
The Supreme Court's refusal to hear the case reinforces the notion that climate-related lawsuits with a basis in state law should be litigated in state courts. This rejection adds to a growing trend, with eight U.S. appeals courts consistently affirming lower court decisions to remand similar climate cases to state courts. These rulings emphasize that the lawsuits primarily address state law claims, thus falling outside the jurisdiction of federal courts.
Minnesota welcomed the Supreme Court's decision, stating that it aligns with similar rulings in courts nationwide and allows the case to proceed toward trial in state court.
As the legal battles continue, environmental advocates suggest that the consistent rejection of moving these cases to federal courts indicates a recognition of the specific nature of state law claims related to climate change.
Zacks Rank & Key Picks
ExxonMobil currently carries a Zack Rank #3 (Hold).
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
SUN’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 28.33%.
The Williams Companies is well-positioned to capitalize on the anticipated substantial long-term growth in U.S. natural gas demand, thanks to its impressive portfolio of large-scale projects that create significant value. The company’s debt maturity profile is in good shape, with its $4.5-billion revolver maturing in fiscal 2023.
WMB’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.68%.
Murphy USA is a low-cost, high-volume fuel seller, whose stations are located near Walmart supercenters. This enables the company to attract significantly more transactions than its peers. MUSA’s sourcing infrastructure is another key competitive advantage.
The company’s earnings beat estimates in two of the trailing four quarters and missed the same twice, delivering an average surprise of 7.04%.
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ExxonMobil (XOM), Koch Climate Lawsuit Faces SC Denial
Exxon Mobil Corporation (XOM - Free Report) , along with Koch Industries and the American Petroleum Institute, faced a notable setback on Monday as the U.S. Supreme Court dismissed their request to shift a climate change lawsuit filed by Minnesota Attorney General Keith Ellison from state court to federal court, per media reports.
The lawsuit, filed by Minnesota in 2020, asserts that the energy industry, including ExxonMobil, Koch and the American Petroleum Institute, employed deceptive marketing practices over several decades to downplay the risks of burning fossil fuels and undermine public understanding of climate change. According to the lawsuit, these companies were aware of the climatic impact of their fossil fuel products as early as in the 1970s and 1980s. The state contends that these entities failed to disclose these risks to the public and actively worked to undermine climate science, resulting in significant economic damages for Minnesota.
ExxonMobil, Koch Industries, and other energy companies, along with lobbying groups such as the American Petroleum Institute, had appealed to the Supreme Court to review the 8th U.S. Circuit Court of Appeals decision. They argued that federal jurisdiction was appropriate, citing the national and global significance of climate change while affirming that the lawsuit belonged to state court, where it was initially filed.
The Supreme Court's refusal to hear the case reinforces the notion that climate-related lawsuits with a basis in state law should be litigated in state courts. This rejection adds to a growing trend, with eight U.S. appeals courts consistently affirming lower court decisions to remand similar climate cases to state courts. These rulings emphasize that the lawsuits primarily address state law claims, thus falling outside the jurisdiction of federal courts.
Minnesota welcomed the Supreme Court's decision, stating that it aligns with similar rulings in courts nationwide and allows the case to proceed toward trial in state court.
As the legal battles continue, environmental advocates suggest that the consistent rejection of moving these cases to federal courts indicates a recognition of the specific nature of state law claims related to climate change.
Zacks Rank & Key Picks
ExxonMobil currently carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Sunoco LP (SUN - Free Report) , The Williams Companies, Inc. (WMB - Free Report) and Murphy USA, Inc. (MUSA - Free Report) . While Sunoco sports a Zacks Rank #1 (Strong Buy), both Williams Companies and Murphy USA carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
SUN’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 28.33%.
The Williams Companies is well-positioned to capitalize on the anticipated substantial long-term growth in U.S. natural gas demand, thanks to its impressive portfolio of large-scale projects that create significant value. The company’s debt maturity profile is in good shape, with its $4.5-billion revolver maturing in fiscal 2023.
WMB’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.68%.
Murphy USA is a low-cost, high-volume fuel seller, whose stations are located near Walmart supercenters. This enables the company to attract significantly more transactions than its peers. MUSA’s sourcing infrastructure is another key competitive advantage.
The company’s earnings beat estimates in two of the trailing four quarters and missed the same twice, delivering an average surprise of 7.04%.