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U.S. Supreme Court Declines to Hear Oil Companies’ Appeal in Honolulu Climate Lawsuit

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The U.S. Supreme Court on Monday rejected an appeal by Sunoco and several other major oil companies to dismiss a lawsuit filed by Honolulu, which accuses the corporations of misleading the public for decades about the environmental risks of burning fossil fuels.

The oil companies, which include Exxon Mobil, BP, Shell, ConocoPhillips, BHP Group, Marathon Petroleum, and Chevron, sought to overturn a decision by Hawaii’s Supreme Court that allowed the lawsuit, filed under state law, to proceed. The lawsuit was initially brought forward in 2020 by the city and county of Honolulu, along with the Honolulu Board of Water Supply.

Lawsuit Claims and Damages

Honolulu’s lawsuit alleges that the oil companies knowingly made deceptive statements regarding the environmental impact of their fossil fuel products, contributing to damages caused by human-induced climate change. Among the cited damages are heat waves stressing the city’s electrical grid and the necessity to retrofit a wastewater treatment facility to counter rising sea levels, an expense estimated at hundreds of millions of dollars.

The plaintiffs argue that the defendants have been aware for over 50 years of the significant adverse effects of greenhouse gas emissions, including rising sea levels and extreme weather events. Rather than addressing these consequences, the lawsuit claims the companies promoted false information, undermined public awareness of climate risks, and intensified the production and use of fossil fuels.

Ben Sullivan, an official from Honolulu’s Office of Climate Change, Sustainability, and Resiliency, welcomed the Supreme Court’s decision, stating, “This landmark decision upholds our right to enforce Hawaii laws in Hawaii courts, ensuring the protection of Hawaii taxpayers and communities from the immense costs and consequences of the climate crisis caused by the defendants’ misconduct.”

Broader Legal Context

Honolulu’s case is part of a broader wave of lawsuits filed by U.S. jurisdictions seeking financial compensation from fossil fuel companies for their role in climate change. The lawsuit highlights projected consequences for Honolulu, including significant sea level rise, coastal flooding, beach erosion, and intensified extreme weather events.

The oil companies have argued that such claims fall under federal jurisdiction, as regulating interstate emissions or commerce is the purview of the federal government. However, Hawaii Circuit Court Judge Jeffrey Crabtree rejected this argument, a decision upheld by Hawaii’s Supreme Court in October 2023.

The defendants previously sought to move the case to federal court but were denied by the U.S. Supreme Court in April 2023.

U.S. Supreme Court Declines Meta’s Bid to Avoid Advertisers’ Lawsuit

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The U.S. Supreme Court on Monday rejected an appeal by Meta Platforms, the parent company of Facebook and Instagram, to block a class-action lawsuit by advertisers accusing the company of inflating audience metrics and overcharging for advertisements.

The decision upholds a ruling by the 9th U.S. Circuit Court of Appeals in San Francisco, which allowed advertisers to pursue damages collectively for Meta’s alleged misrepresentation of the “potential reach” of its ads. The class-action lawsuit, led by former Meta advertisers DZ Reserve and Cain Maxwell, claims that Meta exaggerated its ad viewership metrics by as much as 400% by focusing on the number of social media accounts rather than the actual number of individuals.

Legal Background

The appeals court’s 2-1 decision in March 2024 ruled that the advertisers could proceed as a group, arguing that their claims stemmed from a “common course of conduct” by Meta. This approach allows potentially millions of advertisers who paid for ads on Facebook and Instagram since August 15, 2014, to collectively seek damages, which they estimate could exceed $7 billion.

In its appeal to the Supreme Court, Meta challenged the lower court’s reliance on the “common course of conduct” test, arguing that other federal appeals courts have rejected this standard. Meta also contended that not all advertisers would have found the alleged misrepresentation significant or relied on it when purchasing ads.

Financial and Legal Implications

Advertising remains the cornerstone of Meta’s revenue, accounting for $116.1 billion in the first nine months of 2024. A decision in favor of the plaintiffs could result in substantial financial penalties for the tech giant and set a precedent for future class-action lawsuits involving advertising metrics.

Class actions are often favored by plaintiffs in cases involving widespread claims, as they can lead to larger recoveries at lower costs compared to individual lawsuits.

The lawsuit highlights increasing scrutiny of tech companies’ advertising practices and the metrics used to evaluate the effectiveness of their platforms, which are critical to advertisers’ decision-making and spending.

 

TikTok CEO Shou Zi Chew to Attend Trump Inauguration Amid US Ban Uncertainty

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Shou Zi Chew, the CEO of TikTok, is set to attend U.S. President-elect Donald Trump’s inauguration, as reported by The New York Times. According to sources, Chew has been invited to sit in a position of honor during the event, traditionally reserved for former presidents, family members, and other distinguished guests.

TikTok and its Chinese parent company, ByteDance, have not yet commented on this development. The announcement comes at a time of significant uncertainty for the app in the U.S. Despite having over 170 million American users and generating an estimated $20 billion in revenue by 2025, TikTok faces the imminent threat of a ban due to national security concerns.

The U.S. government has mandated that ByteDance must divest its U.S. operations by January 19, or face a nationwide ban on the app. The law, signed by President Joe Biden last April, has triggered a legal battle, with the U.S. Supreme Court currently deliberating whether to uphold or pause the ban.

There are also reports that Trump is considering issuing an executive order that would delay the shutdown by 60 to 90 days, although the legal framework for such a move remains unclear. TikTok has made plans to shut down its U.S. operations on Sunday unless there is a last-minute intervention.

As the situation continues to unfold, the future of TikTok in the U.S. remains uncertain, with both the company and lawmakers exploring various potential solutions.