NYC Pension Funds and AT&T Settle Lawsuit Over Shareholder Exclusion

New York City Comptroller Mark Levine recently announced that a lawsuit against AT&T has been settled. In response to the lawsuit, AT&T has agreed to include a shareholder proposal from the New York City public pension funds in its upcoming annual general meeting. The proposal, filed by four pension funds, aims to have AT&T disclose its Consolidated EEO-1 Report, similar to what other companies like Verizon and T-Mobile already do.

Comptroller Mark Levine expressed that the settlement is a significant victory for investors, particularly amidst concerns about attempts to stifle investor voices. The agreement with AT&T highlights the company’s obligation to comply with federal securities laws. Shareholders of AT&T will now have the opportunity to vote on the proposal, which seeks transparency and detailed data to assess the company’s efforts in promoting equal opportunity.

Securities and Exchange Commission Rule 14a-8 requires companies to include shareholder proposals in their proxy statements unless they fall under specific exclusions outlined in the rule. This requirement ensures that investors have access to important information to make informed decisions. AT&T had initially attempted to exclude the proposal, citing it as relating to the company’s “ordinary business.” However, the lawsuit challenged this decision, leading to the settlement.

In 2020, the Comptroller’s Office launched the Diversity Disclosure Initiative, which urged large companies to disclose their Consolidated EEO-1 Reports voluntarily. The initiative has seen positive responses, with approximately 80% of S&P 100 companies publicly releasing their reports as of 2025. Companies like Home Depot, McDonald’s Corporation, and Netflix have participated in the initiative, demonstrating a commitment to transparency and accountability.

Revealing the Consolidated EEO-1 Report provides investors with essential information for assessing a company’s workforce composition based on race, ethnicity, and gender. The disclosure is not only cost-effective but also allows for comparisons between companies within the same industry. Companies like AT&T are required to submit the report annually to the Equal Employment Opportunity Commission, making the additional disclosure to investors a minimal burden.

The New York City public pension funds, which collectively own a significant number of shares in AT&T, valued at $209 million, have been active in advocating for transparency and accountability among companies in which they hold investments. The recent settlement with AT&T marks a step towards promoting investor rights and ensuring companies uphold their legal obligations. Through the concerted efforts of stakeholders like the Comptroller’s Office, investor voices are being heard, leading to positive changes in disclosure practices among major corporations.