What's Happening?
Texas Attorney General Ken Paxton has announced an appeal against a preliminary injunction issued by Judge Alan Albright. The injunction exempts Glass Lewis & Co. Inc. and Institutional Shareholder Services
Inc. from complying with Senate Bill 2337, which targets advice based on Diversity, Equity, and Inclusion (DEI) and Environmental, Social, and Governance (ESG) concerns. The appeal is directed to the U.S. District Court for the Western District of Texas.
Why It's Important?
The appeal by Attorney General Paxton represents a significant legal challenge to the regulation of DEI and ESG advisory practices. This case could set a precedent for how such advisory services are regulated in Texas and potentially influence similar legislative efforts in other states. The outcome may impact companies that rely on DEI and ESG advice, affecting their operational strategies and compliance requirements.
