ExxonMobil Targets Defamation Lawsuit Over Recycling Attacks

Exxon Mobil Corporation XOM has filed a lawsuit against California Attorney General Rob Bonta and several environmental groups, accusing them of defaming its advanced plastic recycling initiatives, per a Reuters report. This legal move is part of ExxonMobil’s broader response to increasing criticism from environmentalists and legal challenges related to its role in climate change and greenhouse gas emissions.The lawsuit, filed in the federal court of Beaumont, TX, alleges that Bonta, in collaboration with the law firm Cotchett, Pitre & McCarthy, LLP, has conspired with environmental groups to disparage ExxonMobil’s efforts in advancing its plastic recycling technology. The complaint claims that the law firm, which is linked to the Australian non-profit IEJF, has ties with Andrew Forrest’s Fortescue Metals Group, a competitor of ExxonMobil in low-carbon solutions and energy transition sectors.ExxonMobil is seeking unspecified damages and a retraction of what it deems defamatory statements made by Bonta and the environmental groups. The company argues that the California AG’s actions and statements are part of a broader campaign to undermine its advanced recycling technology, which XOM believes is a key solution to the global plastic waste problem.XOM’s advanced recycling process utilizes heat to break down difficult-to-recycle plastics at a molecular level, allowing for their reuse. This technology is central to ExxonMobil’s sustainability strategy, which aims to address plastic waste while continuing to innovate in the energy transition. In the lawsuit, XOM asserts that its critics, including Bonta and the environmental groups, have falsely labeled the technology a “myth” and a “sham.”Per the report, the California Department of Justice responded to ExxonMobil’s lawsuit, with a spokesperson asserting that XOM’s legal action is an attempt to deflect attention from the company’s alleged deceptive practices. "The Attorney General is proud to advance his lawsuit against ExxonMobil and looks forward to vigorously litigating this case in court," the statement read.ExxonMobil faces another challenge from California Attorney General Bonta, who previously filed a lawsuit against the company in 2023, accusing it of engaging in decades-long deception about the limitations of recycling. Bonta has called for ExxonMobil to be held accountable for its role in creating and exacerbating the plastic pollution crisis.ExxonMobil's recent actions come amid its ongoing efforts to divest California’s oil and gas properties while continuing to criticize the state’s energy regulations.XOM’s Zacks Rank & Key PicksExxonMobil currently carries a Zack Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks like TechnipFMC plc FTI, Sunoco LP SUN and Oceaneering International, Inc. OII. While TechnipFMC and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, Oceaneering carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. It focuses on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. Sunoco is poised to benefit from the strategic acquisitions aimed at diversifying its business portfolio.Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM): Free Stock Analysis Report TechnipFMC plc (FTI): Free Stock Analysis Report Sunoco LP (SUN): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks