Exxon Sues California AG, Environmental Groups Over ‘Smear’ (3)

Exxon Mobil Corp. filed a lawsuit alleging that California Attorney General Rob Bonta and several environmental groups made defamatory comments about the oil company’s ability to recycle plastic.

Exxon accused Bonta, the Sierra Group and others of making “false accusations” about its advanced recycling process. Exxon said in a suit filed in federal court in Texas Monday that the process works and the claims have damaged its relationship with customers.

Rob Bonta

Photographer: Loren Elliott/Bloomberg

“With apparently no appreciation for the irony of their claim, Mr. Bonta and his cohorts are now engaging in reverse greenwashing,” according to the complaint. “While posing under the banner of environmentalism, they do damage to genuine recycling programs and to meaningful innovation.”

Bonta, a Democrat, sued Exxon on behalf of California in September over claims of public nuisance, water pollution and misleading environmental marketing. In a statement at the time, Bonta alleged the company “falsely promoted all plastic as recyclable” when in fact the US recycling rate has never exceeded 9%. Exxon and other manufacturers are also facing plastics recycling suits by a Kansas county and by residents in four states.

In recent months, Exxon has shown a willingness to use the courts to defend its reputation and legal rights when attacked by critics, especially those focused on the environment. Last year, the company sued two of its own investors to remove environmental proposals from the ballot at its annual meeting.

Exxon sought to continue the suit even after the proposals were withdrawn, claiming to be a “forceful advocate” for shareholder rights, but the case was eventually dismissed.

The company claims Bonta made the anti-Exxon statements in a “deliberate smear campaign” in his “personal capacity to drive up donations and publicity for his political campaign.” It also accuses one of the defendants, the Intergenerational Environment Justice Fund Ltd., of serving “private foreign interests” through its relationship with Perth-based Fortescue Metals Group Ltd.

Bonta’s office said the suit is “another attempt from Exxon Mobil to deflect attention from its own unlawful deception” and that the attorney general “looks forward to vigorously litigating this case in court.”

In its own statement, the the Australia-registered non-profit organization Intergenerational Environment Justice Fund said it’s not controlled by Fortescue and its activities in California were to “take action on the issue of plastic waste.”

Fortescue, which is not named as a defendant, rejected Exxon’s assertions in the suit, including the claim it orchestrated litigation to gain a competitive advantage in the low-carbon energy space. The Australian miner is “fully committed” to green hydrogen, a spokesman said in a statement.

The Sierra Club said the suit is “a shameless attempt at intimidation by a multibillion dollar polluter corporation that covered up its climate change denial for decades.”

The Sierra Club has received funding from Bloomberg Philanthropies, the charitable organization founded by Michael Bloomberg, who is the majority owner of Bloomberg News parent Bloomberg LP.

The case is Exxon Mobil Corporation v. Bonta, 25-cv-00011, US District Court, Eastern District of Texas (Beaumont).

(Updates with Sierra Club comment in 11th paragraph.)

To contact the reporter on this story:
Kevin Crowley in Houston at kcrowley1@bloomberg.net

To contact the editors responsible for this story:
Simon Casey at scasey4@bloomberg.net

Peter Blumberg, Doug Alexander

© 2025 Bloomberg L.P. All rights reserved. Used with permission.