Federal Judge Blocks Oklahoma's Proxy Advisor Transparency Act Citing First Amendment Violations
U.S. District Judge Patrick Wyrick has issued a preliminary injunction blocking Oklahoma's House Bill 4429, known as the Proxy Advisor Transparency Act, just one day before it was scheduled to take effect. The law mandated that proxy advisory firms, which counsel institutional investors on how to vote company shares, provide additional disclosures when their recommendations opposed corporate management. However, it did not require similar disclosures when their advice aligned with management. Judge Wyrick deemed this a clear instance of viewpoint discrimination, which necessitates strict scrutiny and a higher legal burden for the government to justify. This ruling marks the fourth time a federal judge has blocked similar legislation, with identical statutes in Kansas, Indiana, and Texas also being halted at the preliminary injunction stage. These laws were all promoted by Consumers Defense, a Virginia-based anti-ESG nonprofit organization. House Speaker Kyle Hilbert's office stated that the ruling is provi...
