US Supreme Court Accepts Chevron, Exxon Appeal Over Louisiana Coastal Damage

The U.S. Supreme Court has agreed to hear an appeal by Chevron, Exxon Mobil, and other oil companies seeking to move lawsuits from Louisiana alleging coastal environmental damage from state court to federal court. The companies argue that their actions were performed under U.S. government contracts during World War II and thus fall under federal jurisdiction under the federal officer removal statute. The lawsuits, initiated by Louisiana parishes, claim billions in damages for coastal erosion caused by decades of oil and gas operations, with one jury awarding Chevron $744.6 million in damages. The Supreme Court's review challenges earlier rulings that kept the cases in state court, which is seen as more favorable to plaintiffs. Despite the legal battles, Chevron maintains a strong market outlook, with analysts projecting an average price target of around $161 and an 'Outperform' rating from brokerage firms. This case marks a significant legal and financial moment for the energy sector as federal jurisdiction could impact the handling of similar environmental lawsuits.