June 5 (Reuters) - Vanguard said its funds supported the

election of Exxon's director nominees at its annual

meeting last week, but the mutual fund giant cited lingering

concerns about the energy company's lawsuit against climate

activists.

All 12 of the company's directors were re-elected

at the company's annual meeting on May 29 including Exxon

Chairman Darren Woods and Lead Director Joseph Hooley. The two

were opposed by environmental activists after Exxon refused to

end its lawsuit against proponents who had put forward a

climate-measure at the meeting, even after they dropped it.

Pennsylvania-based Vanguard cited Exxon's decision in a

recent note posted on its website.

"While the company's decision to continue to pursue the

lawsuit gives us some pause given the potential chilling effect

on future shareholder proposals, we do not, at this time, see

evidence that the (Exxon) board has overseen actions that have

negatively impacted shareholder returns," Vanguard wrote.

A Vanguard spokesman declined further comment.

An Exxon representative said the proponent of the

since-withdrawn resolution "has not conceded that their proposal

violated SEC rules. This is the question at the heart of our

lawsuit: to seek clarity on the SEC proxy rules ... and thereby

foster an environment for open and meaningful shareholder

dialogue."