Exxon Mobil can sue California attorney general for defamation over recycling, judge rules

By Jonathan Stempel

Feb 13 (Reuters) - A federal judge on Friday rejected California Attorney General Rob Bonta's bid to dismiss Exxon Mobil's XOM.N lawsuit accusing him of defamation in criticizing the oil giant's advanced plastics recycling initiatives.

U.S. District Judge Michael Truncale rejected Bonta's claim he was immune from being sued because he criticized Exxon in his official capacity as attorney general, and in the "heartland" of his employment duties.

The Beaumont, Texas-based judge also said whether Bonta criticized Exxon in good faith was a question of fact to be determined later.

Truncale dismissed related claims against the environmental groups Sierra Club, Baykeeper, Heal the Bay and the Surfrider Foundation, saying he lacked jurisdiction.

Bonta's office did not immediately respond to requests for comment.

"This campaign of lies designed to derail our advanced recycling business must stop. We refuse to let others attack our reputation and technology for their financial and political gain," an Exxon spokesperson said in a statement.

Exxon has shown increasing willingness to fight back against environmentalists and other critics who say its operations harm the climate and add to greenhouse gas emissions.

The company, based in the Houston suburb of Spring, Texas, sued Bonta in January 2025, nearly four months after California filed its own lawsuit accusing Exxon of engaging in decades of lies about the limitations of recycling.

Exxon makes polymers used in creating single-use plastics.

Bonta, a Democrat, objected to Exxon's promotion of its advanced recycling technology, which uses a process to convert hard-to-recycle plastic into fuel, saying its slow process was a sign of Exxon's deception.

JUDGE SAYS IT IS NOT UNFAIR TO REVIEW SOME CHALLENGED STATEMENTS

In its lawsuit, Exxon objected to 14 statements it said Bonta made in interviews, online posts and other appearances.

Three statements included claims that Exxon's recycling plan was "not based on truth," that plastic waste was "piling up" in Houston despite recycling efforts, and that only 5% of U.S. plastic waste is recycled while the rest pollutes the environment, waterways, oceans, wildlife and humans.

Two of the statements came from a Reuters interview.

In a 46-page decision, Truncale said it "would not be unfair" to review the three statements for possible defamation because they clearly concerned Exxon, were based on Texas sources, or appeared in a campaign email sent to Texas residents.

The judge said that under applicable Texas law, Bonta’s official immunity "rises and falls based on whether his statements were objectively false."

He also said Bonta's statement about where plastic waste goes appeared in an email that included a campaign contribution link, and "campaigning is not within Bonta's scope of employment."

Truncale was appointed to the bench in 2019 by Republican President Donald Trump.