Paxton Sued by Nonprofits Over ESG Investment Disclosure Law

Texas Attorney General Ken Paxton (R) is facing a new lawsuit from nonprofits that say the state’s new law restricting ESG-related voting guidance to companies’ shareholders unconstitutionally restricts their ability to make value-based investing decisions, including decisions based on religious beliefs.

The Interfaith Center on Corporate Responsibility, United Church Funds, and Ceres Inc. asked the US District Court for the Western District of Texas to block enforcement of Senate Bill 2337 since it violates the First and Fourteenth Amendments, they said in a complaint. The complaint joins prior litigation from proxy advisory firms Glass Lewis & Co. and Institutional ...