Oklahoma’s attorney general announced on Thursday that he is firing the outside legal team hired to defend a state law prohibiting state pension systems from contracting with companies that limit investment in the oil and gas industry. This decision comes days after a judge temporarily blocked the statute’s enforcement.
Republican Attorney General Gentner Drummond stated that he is firing counsel at the Plaxico Law Firm, which he said was handpicked by state Treasurer Todd Russ to defend the law. Drummond also declared that he would remove Russ from any decision-making authority over the legal defense going forward.
The decision follows a state judge’s issuance of a temporary injunction on Tuesday, blocking enforcement of the law in oil-rich Oklahoma. The judge found that a retired state employee, who is challenging the measure, was likely to succeed in his lawsuit alleging that the law violates the state constitution and is too vaguely written.
Drummond expressed disappointment, stating, “It is extremely disappointing that the counsel hired by Treasurer Russ was unable to secure a favorable ruling in defense of Oklahoma’s anti-ESG law.” He referred to so-called environmental, social, and governance policies. “Because of this failure, the law is now on hold and at risk of being struck down entirely. Oklahomans deserve better.”
Russ, a fellow Republican, said in a statement that he had initially asked Drummond to defend the law in court, only to have those requests rejected. He added that he did not believe his decision-making authority could legally be removed. Russ also mentioned that he saw grounds to appeal the court ruling and expressed his hope to have the attorney general as his defender all along.
Plaxico attorneys did not respond to a request for comment.
Oklahoma’s 2022 law is among dozens of Republican-sponsored ESG bills across the country aimed at protecting fossil fuel companies from climate-driven constraints adopted by some Wall Street firms. Despite those concerns, major financial institutions have largely rejected calls to divest from the oil and gas industries, and some have scaled back their involvement with groups seeking to pressure major emitters.
The Oklahoma law prohibits state agencies from doing business with financial firms that limit investments in energy companies and requires the state treasurer to maintain a list of those companies, even if they continue to own shares in fossil fuel firms.
