An Oklahoma judge issued a temporary injunction preventing enforcement of a state law that led to four investment banks being banned from underwriting municipal bonds and the targeting of other financial firms for divestment purposes.
Tuesday's ruling came in a
"Because plaintiff's challenges allege a violation of constitutional rights, this court finds that plaintiff has established a threat of irreparable harm should the act be enforced," Oklahoma County District Court
Russ' office last week updated its list of "boycotters" with
The lawsuit, brought by retired state worker Don Keenan, came after the Oklahoma Public Employees Retirement System determined that commissions, taxes, and fees related to divesting from firms on the list would cost an estimated $9.7 million and tried to use an exemption in the law to avoid divestment.
The judge's order noted "divesture or transfers of assets and investments has the potential to affect the financial soundness of the investment accounts," as well as the treasurer's contention the law aims to counter certain financial companies' political agendas.
"The court finds a substantial likelihood that this stated purpose of countering a 'political agenda' is contrary to the retirement system's constitutionally stated purpose," which is to benefit its members or beneficiaries, according to the order.
Russ said he will appeal the ruling.
"I am solely looking out for the financial interests of the citizens of Oklahoma and its industries," he said in a statement. "This ruling is not going to stop the fight for Oklahomans against activists using ESG in the state."
A study
An effort to apply the act only to state agencies failed in the Republican-controlled legislature.
A report Wednesday by Pleiades Strategy pointed to
