US Judge Dismisses Michigan Antitrust Suit Against Major Oil Companies

A US federal judge has dismissed an antitrust lawsuit brought by the state of Michigan against four major oil companies and a leading industry trade group, ruling that the alleged injuries fall largely outside the scope of antitrust law.

US District Judge Jane Beckering, sitting in Grand Rapids, rejected the case filed in January by Michigan Attorney General Dana Nessel, a Democrat. The defendants were BP, Chevron, Exxon, Shell and the American Petroleum Institute.

Michigan's complaint alleged that the companies conspired to restrain the emergence of electric vehicles and renewable primary energy technologies in the United States, thereby limiting competition in those markets.

In her ruling, Beckering wrote that antitrust laws do not provide a remedy for the harms Michigan sought to address, with the exception of energy overcharges. She found that the link between the alleged conspiracy and the overcharges paid by the state and its residents was too remote to establish that the conspiracy directly caused those costs.

The decision aligns with earlier rulings in similar climate-related lawsuits, which have been rejected by courts in Delaware, Maryland, New Jersey, New York, Pennsylvania, Puerto Rico and South Carolina.

A lawyer for Chevron had previously described Michigan's suit as baseless, pointing to the multiple related dismissals in other jurisdictions.

Chevron and the other companies have for years been contesting lawsuits filed by state and local governments seeking to hold them accountable for climate change. Many of those cases remain pending.

Separately, the Trump administration has taken a series of steps aimed at making it easier for automakers to avoid producing electric vehicles and at raising their cost for consumers, rolling back policies put in place under the Biden administration.