Issue - October 27, 2026

Good morning. It’s Tuesday, October 27, and this week’s ESG Litigation Weekly covers a New Mexico court’s $25 billion penalty against Meta, new Australian guidance on consumer-facing emissions claims, Danone’s commitment to modify plastic bottle claims following earlier commitments by Coca-Cola and Nestlé, and more.

New Mexico Court Orders Meta to Pay $25 Billion in Consumer Protection Case
New Mexico’s First Judicial District Court ordered Meta Platforms to pay $25 billion in civil penalties plus 15% annual interest until payment, following a jury verdict finding 43,899,725 willful violations of the state’s Unfair Practices Act. The case was brought following the Cambridge Analytica scandal, which involved third-party use of Facebook users’ information, and concerned Facebook’s representations about personal data and content moderation. The jury found 26 challenged representations misleading, covering matters including users’ control of their data, third-party access to personal information, and content moderation. The court reserved its decision on injunctive relief pending further briefing. Meta says it will appeal the judgment.
🔗 Read more → New Mexico Department of Justice (Press Release, Court Judgment), AP News

Federal Court Rejects DOJ Bid to Dismiss NAACP Clean Air Act Suit Against xAI
The U.S. District Court for the Northern District of Mississippi rejected the Justice Department’s attempt to dismiss a Clean Air Act citizen suit brought by the NAACP and its Mississippi State Conference against xAI and MZX Tech. The plaintiffs allege that the companies constructed and operated the Colossus gas-fired power plant in Southaven without required permits and pollution controls. The court allowed the United States to intervene on behalf of the U.S. Environmental Protection Agency (EPA) Administrator but held that intervention did not authorize it to unilaterally dismiss the plaintiffs’ case. Earlier that day, the Fifth Circuit temporarily denied the government’s stay request because the district court had not yet fully addressed the issue. The district court’s order did not decide the alleged environmental violations or the defendants’ separate dismissal motion.
🔗 Read more → Earthjustice (Press Release, District Court Order, Fifth Circuit Order)

Instacart Settles Hiring Discrimination Allegations for Up to $5 Million
The U.S. Department of Justice and Equal Employment Opportunity Commission announced a settlement with Instacart resolving allegations of citizenship-status and national-origin discrimination during Permanent Labor Certification (PERM) recruitment. PERM allows employers to sponsor workers for permanent residence after recruiting U.S. workers. The agencies alleged that Instacart required mailed applications for PERM positions while generally accepting electronic applications through its standard recruitment process. The settlement provides for up to $4 million in compensation for affected and deterred applicants and $1 million in civil penalties. Instacart must also revise recruitment policies, accept electronic applications, provide annual training, and undergo monitoring.
🔗 Read more → U.S. Department of Justice (Press Release, Settlement Summary)

Environmental Groups Challenge EPA Delay of Greenhouse Gas Reporting Deadline
Environmental Defense Fund (EDF) and Environmental Integrity Project filed a petition in the D.C. Circuit on October 22 challenging EPA’s latest extension of the deadline for reporting 2025 emissions data under the Greenhouse Gas Reporting Program. The interim final rule, published October 14, moves the deadline from October 30, 2026, to March 10, 2027. EDF describes the delay as unlawful. EPA says it needs additional time to consider comments on its separate proposal to revise the program and prepare its electronic reporting system. The challenge follows an earlier lawsuit by the same organizations over the previous deadline extension. The latest rule changes the reporting deadline only.
🔗 Read more → EDF (Press Release, Court Filing)

ACCC Issues Guidance on Consumer-Facing Emissions Claims
The Australian Competition and Consumer Commission (ACCC) published guidance explaining how existing Australian Consumer Law obligations apply to voluntary emissions claims made to consumers. It says businesses should consider the overall impression their claims convey and use complete, reputable, and clear emissions accounting. Businesses should avoid selective or overly broad claims and distinguish direct emissions reductions from purchased carbon credits. Claims that different activities neutralize or offset one another must have a reasonable basis. The guidance also addresses double counting, the distinction between voluntary actions and legal obligations, and the evidence needed to support future emissions claims.
🔗 Read more → ACCC (Press Release, Guidance)

Canadian Council Finalizes Methodology for Sustainable Finance Taxonomy
Canada’s Taxonomy and Transition Planning Council published the final methodology for the country’s voluntary sustainable finance taxonomy. It establishes green and transition categories for climate-aligned economic activities. The green category covers zero or near-zero emissions solutions and activities directly enabling them. The transition category covers emissions-intensive activities capable of deep decarbonization toward zero or near-zero emissions by mid-century, with stable or growing demand in Paris-aligned pathways. A possible third category for specific abatement measures, including in oil and gas, remains subject to feasibility research. Technical criteria are being developed for six priority sectors. Guidelines for electricity, buildings, and transportation are planned for early 2027, followed by mining, manufacturing, and agriculture and forestry by year-end.
🔗 Read more → Business Future Pathways (Press Release, Methodology Report)

ISSB Consults on Draft Nature-Related Disclosure Practice Statement
The International Sustainability Standards Board (ISSB) opened consultation on a draft Practice Statement that would complement IFRS S1 and IFRS S2. IFRS S1 already requires material information about nature-related risks and opportunities that could reasonably be expected to affect a company’s prospects. The draft adds detail on location-specific information, value-chain considerations, and interactions with Indigenous Peoples, local communities, and affected stakeholders. It also proposes disclosures on nature-related scenario analysis and assets or activities exposed to nature-related risks or aligned with opportunities, with provisions reflecting companies’ circumstances and available information. Companies would not need to apply the Practice Statement to claim compliance with ISSB Standards. Its final form is also under consultation. Comments are due February 19, 2027.
🔗 Read more → ISSB (Press Release, Exposure Draft, Snapshot)

European Parliament Backs Longer Delay for EU Methane Obligations
The European Parliament approved amendments proposing to postpone several obligations under the EU Methane Regulation. By May 31, 2031, importers would first have to demonstrate and report that the previous calendar year’s fuel supplies under contracts concluded or renewed on or after August 4, 2024 were subject to methane monitoring, reporting, and verification equivalent to EU requirements. Reporting on efforts to align older contracts would also begin by that date. Initial methane-intensity reporting by EU producers and importers would move to August 5, 2031. Certain verified measurement reports from EU oil and gas operators would also be delayed. The extensions would exclude fuels originating in or exported from countries subject to EU measures restricting or prohibiting the relevant imports. The amendments require agreement with the Council before becoming law.
🔗 Read more → European Parliament (Press Release, Adopted Text)

Home furniture brand Blu Dot blew up on CTV with help from Roku Ads Manager. Here’s how:

After a test campaign reached 211,000 households and achieved 1,010% ROAS, the brand went all in to promote its annual sales event. It removed age and income constraints to expand reach and shifted budget to custom audiences and retargeting, where intent was strongest.

The results speak for themselves. As Blu Dot increased their investment by 10x, ROAS jumped to 2,308% and more page-view conversions surpassed 50,000.

“For CTV campaigns, Roku has been a top performer,” said Claire Folkestad, Paid Media Strategist, Blu Dot. “Comping to our other platforms, we have seen really strong ROAS… and highly efficient CPMs, lower than any other CTV partner we've worked with.”

Using Roku Ads Manager, the campaign moved from a pilot to a permanent performance engine for the brand.

Learn More

Danone Joins Coca-Cola and Nestlé in Modifying Plastic Bottle Claims
Danone has joined Coca-Cola and Nestlé in committing to modify plastic bottle claims following dialogue with the European Commission and the Consumer Protection Cooperation network. Under the companies’ respective commitments, “100% recycled” claims will clarify when caps and labels are excluded, and marketing must avoid misleading impressions about environmental benefits. The commitments follow a 2023 complaint by the European Consumer Organisation (BEUC) and consumer groups over alleged misleading recycling claims. National consumer authorities will monitor implementation and may take enforcement action if the companies fail to comply.
🔗 Read more → European Commission (Press Release), BEUC (Press Release, 2023 Complaint)

Curtin Survey Finds Limited Trust in Employers’ Climate Claims
According to Curtin University, a survey of 2,048 Australian workers found broad support for corporate climate action alongside skepticism about employers’ claims. The university reported that 97% of respondents believed large Australian companies had a responsibility to address climate change and 76% expected action from their own employer. Only 14% believed their employer was making meaningful progress on climate commitments, while 79% believed greenwashing was common. Some 85% said they would trust claims subject to legally required disclosure and penalties for misleading statements, compared with approximately 44% for self-reported claims or voluntary commitments.
🔗 Read more → Curtin University (Press Release, Report)

Catch up on previous editions → ESGLitigation.com

Enjoyed this issue? Please share it with your colleagues.
Have feedback or collaboration ideas? Contact us at [email protected]