Issue - August 11, 2026

Good morning. It’s Tuesday, August 11, and this week’s ESG Litigation Weekly covers a New Mexico judgment ordering Meta to fund a $567 million youth-harm abatement plan, federal approval of major New Jersey PFAS settlements, the Tenth Circuit’s revival of a Clean Air Act citizen suit against Suncor, and more.

New Mexico Court Orders Meta to Fund $567 Million Youth Harm Abatement Plan
A New Mexico state court found that Meta’s Facebook and Instagram platforms substantially contributed to a public nuisance involving youth mental health and safety, including risks of sexual exploitation, and ordered a five-year abatement plan. Meta must deposit $567 million into a fund for treatment, screening, prevention, and related measures, in addition to $375 million in civil penalties previously awarded for violations of the state’s Unfair Practices Act. The order also requires measures involving age assurance, teen privacy and messaging protections, limits on notifications and usage, safety disclosures, and child-exploitation reporting. AP reported that Meta plans to appeal.
🔗 Read more → New Mexico Department of Justice (Press Release, Court Judgment), The Associated Press (AP News)

Federal Court Approves $2.5 Billion New Jersey PFAS Settlements
New Jersey announced judicial approval of settlements with DuPont-related entities and 3M resolving claims over statewide PFAS contamination, firefighting foam, and pollution associated with four industrial sites. The settlements are valued at approximately $2.5 billion and include payments scheduled over 25 years. Up to $795 million will support statewide PFAS abatement, while up to $365 million will address natural resource damages. The DuPont entities must also establish up to $1.2 billion in remediation funding and a $475 million reserve and remain responsible for fully remediating the four industrial sites regardless of ultimate cost.
🔗 Read more → New Jersey Department of Environmental Protection (Press Release)

Tenth Circuit Revives Clean Air Act Suit Over Suncor Refinery
The Tenth Circuit reversed the dismissal of a citizen suit brought by GreenLatinos, 350 Colorado, and Sierra Club alleging Clean Air Act violations at Suncor Energy’s Commerce City refinery. A Colorado federal court had treated earlier Environmental Protection Agency (EPA) consent decrees together with subsequent administrative enforcement as barring the claims. The appeals court held that the diligent-prosecution bar applies only when a government court action addresses the same emissions standard or limitation challenged by the citizen suit. The case returns to the district court to determine which claims overlap and, where they do, whether government enforcement has been diligent.
🔗 Read more → Earthjustice (Press Release, Court Opinion)

Australian Regulator Charges Inpex Over Ichthys LNG Emissions Reporting
The Northern Territory Environment Protection Authority has brought charges against Inpex over alleged breaches of the environmental license for its Ichthys liquefied natural gas (LNG) plant near Darwin. The regulator alleges that Inpex under-reported emissions, including benzene and toluene, between 2019 and 2024. The charges follow an October 2025 disclosure by Inpex of significant emissions under-reporting, which prompted a regulatory review of Ichthys LNG and Santos’ Darwin LNG facility. That review led to 23 recommendations, including continuous emissions monitoring at major sources. The regulator said it would draft amendments to existing licenses reflecting the changes.
🔗 Read more → Reuters

California Expands PFAS Suit With Fraudulent-Transfer Claims Against DuPont Entities
California Attorney General (AG) Rob Bonta filed a second amended complaint in the federal PFAS multidistrict litigation, expanding the state’s existing claims against DuPont-related entities and adding Qnity Electronics. California alleges that a series of restructurings and asset transfers involving Chemours, Corteva, DuPont de Nemours, and Qnity were intended to hinder, delay, or defraud creditors seeking recovery for PFAS liabilities. The new allegations challenge, among other transactions, a 2025 transfer of Chemours’ PFAS-related insurance rights and DuPont’s Qnity spinoff. California seeks injunctive relief, damages, penalties, restitution, abatement, and remedies for the allegedly fraudulent transfers.
🔗 Read more → California AG (Press Release, Second Amended Complaint)

D.C. Circuit Upholds Injunction Against EPA Climate Grant Terminations
The en banc D.C. Circuit affirmed the portion of a preliminary injunction preventing the EPA from effectuating its March 2025 termination of grants awarded to Climate United and other recipients under the Inflation Reduction Act’s Greenhouse Gas Reduction Fund. Six judges concluded that EPA likely contravened the Act’s mandatory appropriation by seeking to terminate the grants and claw back disbursed funds based solely on a policy disagreement with the program. The remaining portions of the injunction were affirmed by an equally divided court, which also split over the effect of Congress’s 2025 repeal on EPA’s future authority over the grants.
🔗 Read more → D.C. Circuit (Court Judgment), Climate United (Press Release)

SEC Climate Disclosure Rescission Draws Divided Stakeholder Responses
The U.S. Securities and Exchange Commission (SEC) received differing comments on its proposal to rescind the 2024 climate-related disclosure rules, which would require registrants to disclose specified climate risks and financial effects and, for certain larger registrants, material Scope 1 and Scope 2 emissions. Some commenters supported rescission on statutory authority, materiality, and compliance burden grounds. Others opposed the rollback, arguing that standardized climate disclosures improve the reliability and comparability of information available to investors. Comments were due August 3.
🔗 Read more → SEC (Proposed Rule, Public Comments)

EU Digital Product Passport Registry Rules Take Effect
Commission Implementing Regulation (EU) 2026/1778 entered into force on August 6, establishing operational rules for the EU’s Digital Product Passport registry under the Ecodesign for Sustainable Products Regulation. The regulation sets requirements for identity verification, passport registration, unique identifiers, data management, security, and access by authorities. Verified economic operators must keep registration information accurate and current, and remain responsible when authorized third parties register passports on their behalf. The registry applies where EU legislation requires a Digital Product Passport and registration, including future product-specific requirements, rather than independently creating new passport obligations for all products.
🔗 Read more → EUR-Lex (Commission Implementing Regulation (EU) 2026/1778), European Commission (Digital Product Passport)

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Delta Carbon-Neutrality Lawsuit Survives in Part
A California federal court allowed plaintiff Mayanna Berrin’s damages claim under California’s Consumer Legal Remedies Act to proceed past Delta Air Lines’ standing challenge in a proposed class action over its past “carbon-neutral” marketing. Berrin alleges that representations including that Delta was the “world’s first carbon-neutral airline” misled consumers about its environmental impact. The court found a genuine dispute over whether Berrin relied on the representations when purchasing flights. It held that she lacked standing to seek injunctive relief because she had not shown an actual or imminent threat of future harm. The ruling does not determine whether Delta’s marketing was misleading.
🔗 Read more → CourtListener (Court Order, Case Docket)

Law Society Issues Climate Guidance for In-House Counsel
The Law Society of England and Wales published guidance to help in-house legal teams incorporate climate considerations into legal advice, governance, and risk management. It highlights how climate change can engage solicitors’ duties of care, duties to warn, and professional competence, while affecting organizations’ regulatory compliance, disclosure, contracts, litigation exposure, and business resilience. The guidance recommends integrating climate risks into board oversight, transactions, procurement, contracts, and internal policies and strengthening review of sustainability claims to mitigate greenwashing risk. It also encourages collaboration with relevant business functions and development of climate-related expertise across legal teams.
🔗 Read more → The Law Society (Climate Change Guidance for In-House Legal Counsel)

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