Reuters
A federal appeals court on Friday dismissed a lawsuit by four Republican-led states that sought to block a U.S. Securities and Exchange Commission rule requiring investment funds to categorize and disclose their proxy votes on issues including environmental, social and governance (ESG) matters. A three-judge panel of the New Orleans-based 5th U.S. Circuit Court of Appeals concluded that Texas, Louisiana, Utah and West Virginia lacked standing to challenge the rule as they had not shown how the states, or their citizens, would be directly harmed by it. The state attorneys general did not immediately respond to requests for comment, while an SEC spokesperson said the agency is pleased with the decision.