Overview
- The SEC filed a subpoena‑enforcement suit on September 4 in the U.S. District Court for the Eastern District of Pennsylvania seeking to compel Institutional Shareholder Services to produce documents it says were withheld.
- The subpoena, issued on July 21, demands ISS's internal methodologies, communications about specific proxy recommendations, and compliance records that the SEC says are central to its review.
- The agency opened an examination of ISS in March 2026 to probe whether its proxy recommendations and voting activities comply with federal securities laws, and the enforcement action follows failed attempts to resolve the dispute informally.
- ISS has refused to provide some materials, arguing disclosure would raise First Amendment concerns and could expose the firm and its clients to retaliation over voting decisions.
- ISS and Glass Lewis together dominate the proxy‑advice market, so the court's decision could affect how regulators supervise firms that shape shareholder votes and could influence rules on transparency for proxy advisers.