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ExxonMobil Defamation Suit vs. California AG Moves Forward

Yahoo Finance •
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A federal judge in Texas has ruled that ExxonMobil can proceed with a defamation lawsuit against California Attorney General Rob Bonta over statements about the company's plastic recycling claims. U.S. District Judge Michael J. Truncale rejected Bonta's immunity defense, finding that a campaign email sent to Texas residents fell outside his official duties as attorney general.

Bonta had sued Exxon in September 2024, alleging the oil giant misled consumers about plastic recycling rates, claiming less than 5% of plastic actually gets recycled into new products. Exxon countersued in Texas, arguing Bonta's statements harmed business relationships and contracts. The judge dismissed claims against environmental groups but allowed the case to proceed against the attorney general personally.

Truncale specifically cited a campaign email where Bonta stated that only 5% of plastic is recycled and the rest ends up in the environment, adding: 'Exxon Mobil knew, and Exxon Mobil lied.' The judge determined the email's fundraising link transformed it into campaign activity beyond Bonta's official scope. ExxonMobil maintains the dispute centers on California's recycling infrastructure rather than the company's recycling technology.