Texas Attorney General Ken Paxton filed a lawsuit against proxy advisory firm Institutional Shareholder Services, Inc. (ISS) alleging violations of the Texas Deceptive Trade Practices Act by prioritizing political agendas over sound financial guidance in voting recommendations. The lawsuit seeks an injunction to stop deceptive practices and civil penalties of up to $10,000 per DTPA violation. This action follows a 2025 investigation into ISS and peer firm Glass Lewis & Co.
The lawsuit seeks an injunction prohibiting ISS from engaging in deceptive and illegal acts under the DTPA, civil penalties of up to $10,000 per violation of the DTPA, and additional unspecified relief.
In-house legal teams at public companies and institutional investors that engage proxy advisory firms should review their vendor agreements with such firms to ensure they include requirements for objective, financial-principle-based voting recommendations that prioritize fiduciary duty over ideological agendas. Clauses should mandate disclosures of potential conflicts of interest, prohibit the imposition of political or social quotas unrelated to financial performance, include representations of neutrality and compliance with the Texas Deceptive Trade Practices Act, and outline remedies for misleading or deceptive guidance. Teams should also review termination clauses for breaches of fiduciary duty or deceptive practices.
Entity
Institutional Shareholder Services, Inc.
Industry
Financial ServicesOfficial Press Release
https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-worlds-largest-proxy-advisory-firm-pushing-radical-political-agenda
ISS Petition
https://www.texasattorneygeneral.gov/sites/default/files/images/press/ISS%20Petition.pdf
Texas Attorney General Enforcement Page
https://www.texasattorneygeneral.gov/consumer-protection/privacy
"Institutional Shareholder Services, Inc. (“ISS”)"
"Texas Deceptive Trade Practices Act (“DTPA”)"
"misleading institutional investors and public companies by issuing voting recommendations that prioritize radical political agendas over sound financial principles and fiduciary duty"
"seeks to stop ISS from continuing its deceptive and illegal acts, civil penalties of up to $10,000 for each violation of the DTPA, among other relief"
"/sites/default/files/images/press/ISS%20Petition.pdf"
"May 20, 2026"
Texas Attorney General Ken Paxton launched an investigation into Meta regarding its Meta AI Glasses, alleging unlawful collection of facial biometric data, deceptive privacy representations, and unauthorized sharing of user data with subcontractors. The investigation follows concerns that the glasses’ always-on recording mode lacks proper notice, subcontractors access private user content including intimate moments, and Meta plans to deploy facial recognition technology to collect unsuspecting individuals’ facial geometry. The AG issued a Civil Investigative Demand to determine if Meta violated Texas law by deceptively misrepresenting its data use practices.
Texas Attorney General Ken Paxton launched an investigation into Meta's Meta AI Glasses over allegations of unlawful facial biometric data collection, deceptive privacy practices, and unauthorized sharing of user data with subcontractors. The investigation follows concerns that the glasses' always-on recording mode lacks proper user notice, planned facial recognition features would collect data without consent, and private user videos are accessed by third-party annotators in Kenya. The AG issued a Civil Investigative Demand to Meta to determine violations of Texas privacy laws.
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