Four Republican state attorneys general filed lawsuits on May 20, 2026, against Institutional Shareholder Services (ISS), accusing the proxy advisory firm of violating state consumer protection laws by failing to disclose that its voting recommendations prioritize environmental, social, and governance (ESG) policies over clients' financial interests.
Texas Attorney General Ken Paxton (R), Nebraska Attorney General Mike Hilgers (R), Iowa Attorney General Brenna Bird (R), and West Virginia Attorney General Patrick Morrisey (R) filed separate complaints in their respective states. The lawsuits claim ISS advertised its proxy voting recommendations as independent and objective while coordinating with climate activist groups and incorporating ESG mandates into its benchmark voting guidelines without adequate disclosure to clients.
According to a September 2025 Congressional Research Service report, ISS is one of two firms that control more than 90% of the proxy advisory market. The company provides voting recommendations to institutional investors on shareholder proposals at publicly traded companies.
