HOUSTON (Reuters) – A U.S. judge dismissed the lawsuit on Monday Exxon Mobil (NYSE:) filed a lawsuit against activist group Arjuna Capital after the group agreed not to file future proxy statements at the company’s annual meetings.
The lawsuit by the largest U.S. oil company has raised alarms among activists and investors in public pension funds, who say it will stifle debate among shareholders and public companies.
U.S. District Court Judge Mark Pittman ruled that Exxon’s lawsuit was no longer valid after Arjuna “unconditionally and irrevocably” agreed not to file a future proposal regarding Exxon’s greenhouse gas emissions.
“The court cannot advise Exxon of its rights without a valid case or controversy that could give rise to jurisdiction,” and Arjuna’s promise not to file a similar resolution in the future “has eliminated any case or controversy,” Pittman wrote.
Pittman’s firing had no consequences, meaning Exxon could re-file the lawsuit in the future.
Dutch environmental group Arjuna and Follow This have proposed a resolution calling on shareholders to demand the oil company set new targets to cut some greenhouse gas emissions.
Exxon sued the pair in January and refused to dismiss the case after they agreed not to file the petition, citing the “likelihood” that they could file similar resolutions in the future. Pittman last month dropped Follow This from the case because the group was outside his court’s jurisdiction.