Lawsuit aims to block Oklahoma law targeting fossil fuel ‘boycotters’

An Oklahoma law prohibiting state and local government contracts with companies that “boycott” the fossil fuel industry is the target of a lawsuit, claiming the measure prevents public employee pension funds from performing their constitutional duty to operate for the exclusive benefit of their beneficiaries.

The case filed in Oklahoma County District Court this week by a state pension recipient contends the 2022 law also violates the First Amendment and the state’s prohibition against special laws. It seeks a temporary restraining order or injunction that 165 “anti-ESG” measures were introduced in 37 states with at least 22 laws and 6 resolutions in 16 states passing.

In addition to targeting divestment, the Oklahoma and Texas laws led to several national investment banks being banned from underwriting municipal bond deals in their states.

After its placement on Oklahoma’s boycotters list, Wells Fargo resigned as senior manager of a $500 million Oklahoma Turnpike Authority revenue bond issue.