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A U.S. District Judge dismissed a lawsuit Monday by Exxon Mobil (NYSE:XOM) had filed against activist shareholder Arjuna Capital after the group withdrew a proposed resolution calling on the company to take more action in cutting greenhouse gas emissions.
The judge ruled Exxon’s (XOM) claim was no longer valid after Arjuna’s pledge not to submit future proxy filings at the company’s annual meetings “has eliminated any case or controversy.”
The dismissal was without prejudice, meaning Exxon (XOM) could refile its case in the future.
Exxon (XOM) sued Arjuna and fellow activist investor Follow This in January and refused to drop the case after the groups agreed not to bring their petition forward, citing “the likelihood” the two could file similar resolutions in the future; the judge dropped Follow This from the case last month, saying the group was outside the court’s jurisdiction.
The lawsuit had caused alarm among activists and some investors who argued it would stifle debate among shareholders and public companies.
