By Mike Scarcella
Feb 21 (Reuters) - A U.S. judge said Thursday that Exxon XOM.N, Chevron CVX.N, Shell SHEL.L and six other oil companies should face part of a lawsuit in Puerto Rico accusing them of misleading the public about climate change and conspiring to suppress clean energy alternatives.
The preliminary ruling by U.S. Magistrate Judge Héctor Ramos-Vega in San Juan said that a group of Puerto Rican towns provided enough information for now to pursue antitrust and racketeering claims against Exxon and the other companies.
Ramos-Vega recommended dismissing consumer deception, fraud and other state claims from the lawsuit. A federal district court judge will consider whether to adopt all or part of Ramos-Vega's ruling.
The municipalities alleged in their 2022 lawsuit that the oil companies formed a coalition used to fund a marketing campaign to deny climate change and worked together to undermine alternative energy sources. The lawsuit seeks damages tied to the destruction caused to Puerto Rico by Hurricanes Irma and Maria in 2017.
The decision is a “major victory for climate accountability” that sets the lawsuit on track for a trial, said Marc Grossman of law firm Milberg Coleman Bryson Phillips Grossman, a lawyer for the 37 Puerto Rican municipal plaintiffs.
Representatives for Exxon, Chevron and Shell did not immediately respond to requests for comment. The oil companies have denied any wrongdoing.
In seeking dismissal of the lawsuit, the oil companies said the complaint was “premised on the breathtaking notion that defendants may be held liable for all carbon emissions, everywhere and at any time.”
Dozens of U.S. state and local municipalities have sued oil companies to seek monetary damages for their alleged role of contributing to climate change.
Last month, the U.S. Supreme Court declined a bid from major oil companies to stop a lawsuit by Honolulu accusing them of misleading the public about the dangers of climate change.
In a separate decision last month, a state judge dismissed New York City’s lawsuit accusing Exxon and other companies of duping the public about their products.
The case is The Municipalities of Bayamon et al. v. Exxon Mobil Corp. et al., U.S. District Court for the District of Puerto Rico, case No. 3:22-cv-01550.
For the municipalities: Marc Grossman, Melissa Sims, and Vicki Maniatis of Milberg Coleman Bryson Phillips Grossman
For Chevron: Theodore Boutrous Jr of Gibson, Dunn & Crutcher, and Neal Manne of Susman Godfrey
For Exxon: Theodore Wells Jr of Paul, Weiss, Rifkind, Wharton & Garrison
For Shell: David Frederick of Kellogg, Hansen, Todd, Figel & Frederick
Read more:
New York City lawsuit against Exxon, BP, Shell over climate change dismissed
US Supreme Court rejects bid by oil companies to toss Honolulu's climate suit
Consumers sue Exxon, Dow, others over plastic recycling claims
Puerto Rican towns sue Big Oil under RICO alleging collusion on climate denial
(Reporting by Mike Scarcella)
((Mike.Scarcella@thomsonreuters.com;))
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