JEFFERSON CITY — A private law firm defending a politically charged investing rule imposed by Secretary of State Jay Ashcroft has billed Missouri taxpayers more than $167,000 in the early stages of the lawsuit.
The firm, Kansas City-based Graves Garrett, submitted hourly billing records showing its attorneys preparing for the legal fight against a trade organization that says Ashcroft’s rule violates the constitutional right to free speech.
The rule was put in place last year by Ashcroft as a way to limit the impact of environmental, social and governance (ESG) factors in investment decisions.
He filed the so-called “anti-woke†rule after Missouri lawmakers failed to ban state involvement in banks that prioritize climate change or other socially driven investments.
People are also reading…
The billing records, obtained by the Post-Dispatch through an open records request, show at least seven people at the firm are working on the case, including attorney Edward Greim, who contributed money to Ashcroft’s campaign for governor.
In August, for example, the records show attorneys billed the state $2,205 after they spent time debriefing following a call with Ashcroft’s office. The work included talking about strategy and “gameplan.â€
Also included are hours spent doing legal research related to the case. Discussions listed in the billing records included a failed effort to get the case dismissed.
Ashcroft, a candidate for governor, hired the firm to fight a challenge to his rule change, rather than leave the case in the hands of Attorney General Andrew Bailey’s office, where most cases against the state are handled.
At the time, Ashcroft campaign spokesman Jason Cabel Roe said the case requires law firm with a specialized understanding of securities law.
Bailey’s office signed off on the hire but denied Ashcroft’s request to pay for the outside lawyers with a fund overseen by the attorney general.
Along with Greim, law firm partner Todd Graves is a political player, having previously served as head of the Missouri Republican Party.
Graves currently serves on the University of Missouri board of trustees.
The firm was handed a loss Jan. 5 when U.S. District Judge Steven Bough ruled against a request to dismiss the case brought by the Securities Industry and Financial Markets Association.
The trade group argues the rules introduced by Ashcroft violate the constitutional right to free speech by requiring brokers to stick to a script. They also say the rule fails to acknowledge that federal law already requires financial advisers to act in the best interest of their clients when providing personalized investment advice.
Bough said the trade organization can continue its pursuit of the case because it has the legal standing to represent financial advisers who object to Ashcroft’s rule.
Ashcroft, who is facing Lt. Gov. Mike Kehoe and Sen. Bill Eigel in the August 2024 GOP primary, has used the lawsuit to raise money for his gubernatorial campaign, where culture war issues have played a prominent role.
Secretary of State spokesman JoDonn Chaney said the office is pleased with the work of Graves Garrett.
“The firm was selected based on their knowledge and expertise regarding the issue,†Chaney said.