Exxon Mobil flubs its challenge to California disclosure law

SACRAMENTO, Calif. — A federal court in California ruled that a state law, S.B. 261, does not require companies to disclose climate-related financial risks they face on their websites. Exxon Mobil sued the state over the law, which imposes a fine on firms that do not make such disclosures, arguing the statute is preempted by the National Securities Markets Improvement Act. The court disagrees, finding the law does not require firms to alter their federal filings with the Securities and Exchange Commission and that the fine does not keep companies from offering securities to Californian investors.Read the ruling here.Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads