Four States Sue ISS Over ESG Advice, Alleging Deceptive Practices and Conflicts

3 articles · Updated · ESG Today · May 23

Texas, Nebraska, Iowa and West Virginia filed new lawsuits accusing ISS of violating consumer-protection and deceptive-practices laws through ESG- and DEI-linked proxy advice to investors.
The states say ISS falsely marketed its recommendations as objective while factoring in climate, ESG and DEI considerations they argue were not tied to financial returns.
Several suits also allege conflicts of interest, claiming ISS sold ESG consulting services to companies it also covered in research reports and failed to disclose ownership they describe as tied to ESG activists.
ISS said the allegations lack merit and that it provides independent proxy research and vote recommendations based on policies selected or customized by institutional clients.
The cases extend a broader anti-ESG push against proxy advisers, following Florida's 2025 suit and Trump administration moves to tighten federal scrutiny of ISS and Glass Lewis.

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