May 22 (Reuters) - A U.S. judge on Wednesday allowed a

lawsuit Exxon Mobil ( XOM ) filed against two activist groups

seeking to bar their climate resolution to go ahead against one

of the two groups.

The oil company's lawsuit raised alarm among activists and

proxy advisers who argued it would muzzle debate among

shareholders and public companies.

Exxon sued climate activist groups Arjuna Capital and Follow

This in January and told the court it would not drop the matter

after they agreed to withdraw their petition, citing "the

likelihood" the pair could file similar resolutions in the

future.

U.S. District Judge Mark Pittman ruled Exxon could continue

its case against Arjuna Capital. But he said it could not pursue

its claim against Netherlands-based climate activist group

Follow This, finding it was outside of the court's jurisdiction.

The judge also denied Exxon's request for discovery.

His decision comes ahead of Exxon's annual shareholder

meeting on May 29.

Exxon won support from business lobby groups the U.S.

Chamber of Commerce and Business Roundtable, which said the case

"exemplifies activist groups' takeover of the shareholder

proposal process to score ideological points."