Texas Sues Glass Lewis Over ESG Proxy Advice — AG Campaign Widens

On July 29, 2026, Texas Attorney General Ken Paxton filed suit against Glass Lewis in the Texas District Court for Collin County, alleging deceptive trade practices based on proxy voting advice the state says was advertised as objective but was influenced by ESG and DEI considerations. The complaint seeks an injunction requiring clear disclosure when Glass Lewis provides ESG-focused advisory services. The suit follows a similar complaint against ISS filed May 20, and a 2025 Texas law — currently subject to legal challenge by both proxy firms. The state-AG campaign against proxy advisory firms reflects a broader pattern: ESG governance infrastructure, including rating methodologies, proxy recommendations, and sustainability index inclusion, is now a target for both progressive climate litigation and conservative antitrust and consumer-protection enforcement. Law firms advising institutional investors, boards, and proxy advisers need to address both vectors simultaneously.