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Michigan AG Accuses Oil Giants of Coordinated Effort to Stifle Competition

By  |  January 25, 2026

Michigan Attorney General Dana Nessel has filed a federal antitrust lawsuit against several of the world’s largest petroleum companies and a prominent oil trade organization, accusing them of unlawfully coordinating to block competition and slow the growth of renewable energy.

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    The lawsuit, filed Friday in the U.S. District Court for the Western District of Michigan, names BP, Chevron, Exxon Mobil, Shell, and the American Petroleum Institute. The complaint alleges violations of the federal Sherman Antitrust Act and Clayton Antitrust Act, as well as the Michigan Antitrust Reform Act, according to a statement from Nessel’s office.

    The legal action follows heightened political tensions surrounding climate and energy policy. Just two days earlier, a coalition of Republican attorneys general sent a warning letter to climate-focused nonprofit Ceres, accusing the group of antitrust violations for allegedly coordinating pressure campaigns against financial institutions and companies involved in fossil fuel investments. That letter referred to Ceres as “a ringleader of the ‘climate cartel,’” per a statement from the group of state officials.

    In contrast, Nessel’s lawsuit claims the fossil fuel defendants themselves acted as a cartel, working together to restrain trade and prevent renewable energy from competing in transportation and broader energy markets, according to a statement included in the court filing.

    The complaint outlines what it describes as decades of coordinated conduct. It alleges that the companies abandoned renewable projects, manipulated patents, pursued litigation to block competitors, and suppressed information about the environmental and economic costs of fossil fuels. The suit also claims the defendants misled public institutions, intimidated critics, and used trade associations to coordinate strategies that steered investment away from alternative energy, per a statement summarizing the state’s allegations.

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    “Michigan is facing an energy affordability crisis as our home energy costs skyrocket and consumers are left without affordable options for transportation. Whether you own a home, a small business, or run a large corporation, rising energy and transportation costs harm everyone,” 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.”

    Nessel has been preparing for this type of litigation for more than a year. In 2024, she issued a call for proposals seeking outside legal counsel to pursue claims related to climate change impacts allegedly caused by the fossil fuel industry, according to a statement from the Department of Attorney General.

    The state selected Sher Edling LLP, DiCello Levitt LLP, and Hausfeld LLP to serve as Special Assistant Attorneys General in the case. All three firms are working under contingency agreements, meaning Michigan will not pay upfront legal costs. Instead, the firms would receive a portion of any financial recovery awarded through the lawsuit, per a statement from the department.

    The case now moves to federal court, where it could shape the future of energy competition and climate-related litigation nationwide.

    Source: Michigan Advance