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Federal Court Declines To Issue Preliminary Injunction in Lawsuit Challenging California’s SB 253 and SB 261

August 13, 2025 Perspectives

On August 13, 2025, the Central District of California denied plaintiffs’ Motion for Preliminary Injunction in Chamber of Commerce of the United States of America v. CARB (Case No. 2:24-cv-00801-ODW-PVC). 

As a reminder, starting in 2026, business entities organized under U.S. law, doing business in California, and with annual revenues over $500M are required by SB 261 to make biennial disclosures regarding climate-related financial risk, and those with annual revenues over $1B are required by SB 253 to make annual disclosures of their green-house gas emissions.

Among other things, in denying the Motion for Preliminary Injunction, the court found that plaintiffs were not likely to prevail on their First Amendment challenges to SB 253 and SB 261.  This means that the court will not be enjoining enforcement of SB 253 and SB 261 while the claims are further litigated, and it does not bode well for the final resolution of these challenges to SB 253 and SB 261.

The court’s Order Denying Plaintiffs’ Motion for Preliminary Injunction can be found here.