A federal court in Texas has dismissed ExxonMobil’s lawsuit against activist shareholders Arjuna Capital and the climate non-profit Follow This. The lawsuit, initiated by Exxon in December, aimed to halt shareholder petitions demanding the oil giant address climate change risks. Exxon argued that these petitions breached US securities rules and claimed they abused the shareholder-access system.

The decision, delivered by US district judge Mark Pittman, followed Arjuna Capital’s commitment not to refile its climate petition at Exxon’s annual meetings. Exxon’s CEO, Darren Woods, commented that the court’s order confirmed Arjuna is bound by its promise, rendering Exxon’s claims moot.

Arjuna Capital’s chief investment officer, Natasha Lamb, welcomed the ruling, emphasizing the financial risks climate change poses to the oil and gas industry. Follow This founder Mark van Baal expressed relief, noting that the dismissal prevents potential future litigation against shareholder initiatives aimed at climate action.

The dismissal marks the end of a six-month legal battle closely watched by major investors, including Calpers and Norway’s sovereign wealth fund, who viewed the case as a significant test of shareholder rights. Exxon’s case against Follow This was previously dismissed on jurisdictional grounds.