US judge dismisses Michigan climate lawsuit against oil companies

By Reuters News

By David Shepardson

- A US judge on Tuesday dismissed an antitrust lawsuit in which Michigan accused four major oil companies of colluding to forestall competition in renewable energy, including electric vehicles, a decision in line with prior rulings in similar cases.

US District Judge Jane Beckering in Grand Rapids rejected the lawsuit filed in January by Michigan Attorney General Dana Nessel, a Democrat, against BP BP.L, Chevron CVX.N, Exxon XOM.N, Shell SHEL.L and the American Petroleum Institute.

The judge said antitrust laws protect against none of the injuries for which Michigan sought a remedy, except for energy overcharges.

"The distance is too great between the alleged conspiracy and Michigan’s and its residents’ overcharges to find that the conspiracy proximately caused the overcharges," Beckering said.

The complaint said the companies sought to "restrain the emergence of electric vehicles and renewable primary energy technologies in the United States."

Other judges have rejected similar climate lawsuits including in Delaware, Maryland, New Jersey, New York, Pennsylvania, Puerto Rico and South Carolina.

A lawyer for Chevron previously called Michigan's lawsuit “baseless as demonstrated by multiple related court dismissals."

Chevron and the other companies have been fighting for years against lawsuits by state and local governments seeking to hold them responsible for climate change, many of which remain pending.

The Trump administration has taken a series of actions to make it easier for automakers to avoid building electric vehicles and make them more expensive for consumers to buy, reversing Biden administration policies.

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