Exxon, others defeat consumer lawsuit over plastic recycling claims

By Reuters News

By Mike Scarcella

- Exxon Mobil (XOM.N), Chevron (CVX.N) and other major chemical producers persuaded a US judge on Tuesday to dismiss a lawsuit accusing them of misleading the public for years about the effectiveness of plastic recycling and driving up costs for consumers.

Here are the details:

  • US District Judge Toby Crouse, in a ruling on Tuesday, said the plaintiffs — eight individuals and the board of a local county commission — failed to show that they have so-called standing to sue in the first place

  • Crouse said the lawsuit, despite its length, “is light on facts connecting the defendants’ conduct and plaintiffs’ injuries.” The judge said the complaint “fails to allege that any specific plaintiff saw any specific ad or marketing material produced by any specific defendant”

  • In their 2024 lawsuit, the plaintiffs alleged that Exxon, Chevron and other companies duped consumers into believing that plastic is recyclable, leading them to buy more plastic products. The plaintiffs proposed a class of millions of purchasers of plastic products nationwide

  • In court papers, the plaintiffs said the companies “engaged in a coordinated, fraudulent marketing scheme to portray plastics as broadly and readily recyclable, knowing that the vast majority of consumer plastics cannot be and are not recycled”

  • Crouse said other manufacturers and retailers that are not parties to the case are responsible for setting prices. He also found the “breadth” of some of the plaintiffs’ claims undermined their viability

  • “The plaintiffs argue that the price of every single plastic product that they have ever purchased was artificially inflated because of the defendants’ conduct,” the judge wrote. “That bald conclusion fails to account for the obvious intervening events and market conditions”

  • Exxon, Chevron and a lead attorney for the plaintiffs did not immediately respond to requests for comment

  • The companies in their bid for dismissal said the plaintiffs were seeking to impose liability on them “based on an innocuous and socially beneficial activity: the promotion of recycling”



Read more:

US judge dismisses Michigan climate lawsuit against oil companies

Exxon, other oil companies defeat climate lawsuit by Puerto Rican towns

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.
The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.
 

Cryptocurrency-related content is intended solely as news and market commentary. Crypto Derivatives are not available to Retail clients registered with Capital Com (UK) Ltd.