Exxon Mobil recently bypassed the Securities and Exchange Commission and sued activist investors who filed a climate-related shareholder resolution calling on the company to set new targets for reducing some of its greenhouse gas emissions. A federal judge dismissed the case but the matter raised concerns about shareholder rights.
An article by Reuters noted that litigation & enforcement partners Amy Roy and Rob Skinner don’t expect similar litigation because companies generally wish to avoid alienating institutional investors. But for activist shareholders considering submitting a proposal, the threat of being sued “could certainly cause an activist investor to think twice about submitting proposals,” said Amy and Rob.
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