AG Nessel is suing major oil firms, alleging antitrust violations that raised energy costs for consumers while hindering renewable energy competition.
LANSING, Mich. — Michigan Attorney General Dana Nessel filed a federal antitrust lawsuit Thursday against BP, Chevron, ExxonMobil, Shell and the American Petroleum Institute, alleging the companies conspired for decades to suppress competition from renewable energy.
The lawsuit, filed in U.S. District Court for the Western District of Michigan, accuses the defendants of violating the Sherman Antitrust Act, the Clayton Antitrust Act and the Michigan Antitrust Reform Act. Nessel alleges the companies acted as a cartel to maintain dominance in transportation and energy markets, driving up costs for Michigan consumers.
“Michigan is facing an energy affordability crisis as our home energy costs skyrocket and consumers are left without affordable options for transportation,” Nessel said in a statement. “These out-of-control costs are not the result of natural economic inflation, but due to the greed of these corporations who prioritized their own profit and marketplace dominance over competition and consumer savings.”
The lawsuit details what Nessel’s office describes as coordinated efforts dating back to the 1950s, when the companies allegedly learned fossil fuel consumption would have significant negative environmental impacts but concealed that information from the public.
According to the complaint, the defendants abandoned renewable energy projects, used patent manipulation and litigation to hinder market competitors, suppressed information about fossil fuel costs and alternative energy viability, infiltrated information-producing institutions, and used trade associations like the American Petroleum Institute to coordinate efforts to divert investment away from renewable energy.
Nessel alleges that as a result of this conspiracy, Michigan consumers suffer from artificially high prices for fossil fuel energy products and reduced consumer choice. The state also faces costs related to climate change impacts, rising insurance premiums, reduced home values and damage to Michigan’s economy, according to the lawsuit.
The attorney general’s office began seeking proposals from law firms in May 2024 to pursue litigation related to climate change impacts from the fossil fuel industry. The firms Sher Edling LLP, DiCello Levitt LLP and Hausfeld LLP were selected to work on contingency contracts, meaning the state will not pay for their services and any compensation will come only from financial relief awarded in the litigation.
The attorney general’s office said the investigation initially focused on climate change-related financial impacts to Michigan, but uncovered what it described as antitrust violations.