Multiple states sue proxy advisory firm over allegations it misled investors

Multiple states sued proxy advisory firm Institutional Shareholder Services on Wednesday, accusing it of misleading investors while pushing some of its environmental, social and governance policies.

Iowa, Nebraska, Texas and West Virginia all filed individual lawsuits against the company this week, claiming it engaged in deceptive trade practices and harmed consumers. 

The lawsuits specifically accuse the company of failing to inform its clients of its considerations of the race and ethnicity of board candidates and of pushing radical climate policies in their recommendations.

"Instead of providing its clients objective and impartial investment advice, as advertised, ISS has provided and continues to provide advice tainted by ISS’ own ESG ideological considerations untethered to its clients’ best financial interests and prepared in close coordination with ESG activists," the lawsuit states.

Some of the recommendations that the advisory firm offered its investors are "neutral" reports on the adoptions of a Climate Accountability policy, a Say on Climate policy, the inclusion of a full-page Climate Awareness Scorecard in each report grading the company and the adoption of a Racial and/or Ethnic Diversity policy.

The lawsuits come after Florida sued ISS and Glass Lewis last year for pushing a political agenda onto consumers. 

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.