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Minnesota Lawsuit Against Exxon, API, & Koch Industries Permitted to Proceed in State Court by 8th Circuit

On July 14, 2021, the United States Court of Appeals for the Eighth Circuit ruled that a lawsuit filed by the state of Minnesota against ExxonMobil, the American Petroleum Institute (API), and Koch Industries can proceed in state court. The lawsuit alleges that the defendants engaged in a decades-long campaign to deceive the public about the risks of climate change and the role of fossil fuels in causing it.

The lawsuit was originally filed by Minnesota Attorney General Keith Ellison in June 2020. It accuses the defendants of violating Minnesota’s consumer protection laws by engaging in deceptive advertising and marketing practices. Specifically, the lawsuit claims that the defendants knew for decades that their products were contributing to climate change, but instead of taking action to address the problem, they engaged in a coordinated effort to mislead the public about the science of climate change and the risks associated with continued use of fossil fuels.

The defendants had sought to have the case moved to federal court, arguing that it raised federal questions and that federal law preempted Minnesota’s consumer protection laws. However, the Eighth Circuit rejected those arguments, finding that the case could proceed in state court.

The ruling is significant because it allows Minnesota to continue its efforts to hold the defendants accountable for their alleged role in contributing to climate change. It also sets a precedent for other states that may be considering similar lawsuits against fossil fuel companies.

The lawsuit is part of a growing trend of legal action against fossil fuel companies for their role in contributing to climate change. In recent years, cities, states, and other entities have filed lawsuits seeking damages from fossil fuel companies for the costs associated with climate change impacts such as sea level rise, extreme weather events, and wildfires.

While some of these lawsuits have been dismissed or are still pending, others have resulted in significant settlements or judgments against fossil fuel companies. For example, in 2019, ExxonMobil was ordered to pay $2.75 million in a lawsuit brought by the state of Massachusetts for violating the state’s consumer protection laws by misleading consumers about the risks of climate change.

The Minnesota lawsuit is just one of many legal challenges facing fossil fuel companies as the world grapples with the impacts of climate change. As the scientific consensus on the role of fossil fuels in causing climate change continues to strengthen, it is likely that we will see more lawsuits and legal action against these companies in the years to come.

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