On February 17, 2026, four New York City public pension funds—including the New York City Employees’ Retirement System, police, teachers, and other public‑sector employee funds—filed a lawsuit against AT&T Inc. The suit alleges that AT&T unlawfully denied shareholders the right to vote on a proposal that would require the company to disclose the racial, ethnic, and gender breakdown of its 133,000‑person workforce.
AT&T had publicly disclosed workforce diversity data for 2021 through 2023, but it stopped publishing the breakdown in 2024. The company has not explained the halt, but industry observers note that many firms scaled back DEI reporting after a 2025 executive order from President Trump that framed such efforts as potentially discriminatory. AT&T continues to submit the data to the U.S. Equal Employment Opportunity Commission, but it has not made the information available to the public or to shareholders.
The lawsuit centers on a November SEC policy change that allows companies to exclude shareholder proposals if they can demonstrate a “reasonable basis” for doing so. AT&T cited this policy to block the pension funds’ proposal, arguing that the disclosure would be a “non‑material” request. The pension funds counter that the policy does not justify excluding a proposal that is essential for investors to assess the company’s diversity and inclusion practices, which are increasingly linked to long‑term performance and risk management.
Legally, the plaintiffs claim that AT&T’s action violates Section 14 of the Securities Exchange Act of 1934 and that Delaware law does not permit the exclusion of such proposals. The lawsuit references precedent in which the SEC has granted or denied assurances to hundreds of companies, and it cites comments from SEC Chair Paul Atkins that many shareholder proposals are invalid under Delaware law. The case therefore tests the limits of the SEC’s policy and the extent of corporate governance protections for shareholders.
The outcome of the lawsuit could have significant implications for AT&T’s governance practices and its relationship with investors. A ruling against AT&T would reinforce the principle that shareholders can demand transparency on material ESG metrics, potentially prompting the company to resume public disclosure and to face increased regulatory scrutiny. Conversely, a ruling in AT&T’s favor would signal that the SEC’s policy change is enforceable and could embolden other firms to limit shareholder proposals on similar grounds.
AT&T’s workforce size—133,000 employees—underscores the scale of the data at issue. The company’s decision to stop public disclosure, coupled with the lawsuit, highlights a broader industry trend of scaling back DEI reporting in the wake of regulatory and political pressures. The case will be closely watched by investors, regulators, and other companies navigating the evolving landscape of shareholder rights and ESG transparency.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.