U.S. District Judge Matthew Brookman sided with Institutional Shareholder Services and Glass Lewis, concluding the Indiana law constituted prohibited viewpoint discrimination. The statute, slated to take effect July 1, sought to impose specific disclosure burdens exclusively on firms that disagreed with company boards. By blocking the measure, Brookman reinforced the plaintiffs' First Amendment arguments, mirroring recent judicial outcomes in Kansas and Texas.

Republican lawmakers have increasingly targeted proxy advisers, arguing their influence unfairly elevates environmental, social, and governance priorities over traditional financial outcomes. However, the legal string of defeats suggests that state-level attempts to regulate the firms' research processes face significant constitutional hurdles. While Indiana’s Attorney General Todd Rokita did not comment on the ruling, both ISS and Glass Lewis hailed the decision as a defense of objective research and free speech. Similar legal battles remain active in Kentucky and Florida, as the industry continues to push back against state-led attempts to mandate alignment with corporate management.