Wall Street Suit Over ESG Curbs Survives Missouri Bid to Ax Case

A Wall Street challenge to Missouri’s high-profile environmental, social and governance investing constraints can proceed in court after a federal judge rejected the state’s attempt to scuttle the case.

The Securities Industry and Financial Markets Association had grounds to allege the Missouri ESG rules inappropriately preempted federal law giving the Securities and Exchange Commission the power to regulate investment firms, Judge Stephen R. Bough of the US District Court for the Western District of Missouri said in an order Friday. The Missouri rules require asset managers to get written consent from clients in the state before using any “social and/or ...