Federal court denies injunction against California climate disclosure laws

The US District Court for the Central District of California denied a motion for preliminary injunction on August 13, 2025, ruling that the US Chamber of Commerce had not demonstrated a likelihood of success on its First Amendment claims against SB 253 and SB 261. The court applied a commercial speech standard rather than strict scrutiny, finding that California had substantial interests in requiring climate disclosures from large corporations. Plaintiffs immediately prepared to appeal to the Ninth Circuit.