A federal judge on Friday blocked Texas from enforcing a first-of-its-kind state law restricting Glass Lewis and ISS, two of the best-known proxy advisers, from advising shareholders on diversity, environmental and governance practices.
U.S. District Judge Alan Albright in Austin, Texas, issued preliminary injunctions against the state’s Republican Attorney General Ken Paxton, after Glass Lewis and ISS said the law would unconstitutionally force them to convey Texas’ preferred views on hot-button issues.
Paxton’s office did not immediately respond to requests for comment.
Signed in June by Republican Governor Greg Abbott, Senate Bill 2237 targeted “non-financial” advice on diversity, equity and inclusion (DEI) matters, and environmental, social and governance (ESG) matters.
The law req