The [First?] Battle Is Joined: Two Groups Sue the Kentucky Attorney General Over ESG Investigations

On November 1, 2022, HOPE of Kentucky, an affordable multifamily housing lender, and the Kentucky Bankers Association, a banking trade association (whose members are approximately 150 national banks, state banks and savings banks and represent virtually all of the commercial banking industry in Kentucky), jointly filed a complaint  against the Kentucky attorney general (KY AG) seeking injunctive and declaratory relief regarding recent investigations by the KY AG that included subpoenas and civil investigative demands (CIDs) issued to six major banks.

The complaint alleges that these investigations exceed the KY AG’s authority and that the CIDs violate free speech and association rights; even if they don’t, are overly broad (including by requiring information for which enforcement is time-barred); and are otherwise burdensome.