Several nonprofit organizations have filed a federal lawsuit against Texas Attorney General Ken Paxton in the U.S. District Court in Austin, challenging the constitutionality of Senate Bill (SB) 2337 by state Sen. Bryan Hughes (R-Mineola) because they say it chills their speech about “value-based investing.”
SB 2337, passed during the 89th Legislative Session, requires a proxy advisory firm to disclose when its recommendations are based on “non-financial factors” or “conflict with other proxy advisory services.”
