SEC sued over alleged protection of Kroger from political discrimination complaints

Sen. Ton Cotton, R-Arkansas, noted the irony of companies he says discriminate against conservatives who run to the GOP to protect them from regulation.

A nonprofit law firm is taking legal action against the Securities and Exchange Commission (SEC), alleging that the government agency illegally ignored Kroger shareholders who tried to protect employees from discrimination based on political ideologies.

America First Legal (AFL) joined Boyden Gray & Associates, based in Washington, DC, to petition the US Circuit Court of Appeals for the Fifth Circuit on behalf of the National Center for Public Policy Research (NCPPR) and two individual shareholders of grocery retail giant AFL announced in a press release last week.

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In December, Senator Tom Cotton, R-Ark., scolded Kroger Chairman and CEO Rodney McMullen for the company’s “wake” policy, noting that the company paid $180,000 to settle a lawsuit brought by two former employees in Arkansas who claim they were fired for refusing to wear aprons to celebrate the LGBTQ+ community.

NCPPR, a communications and research foundation, is also a long-time shareholder of Kroger and has submitted a proposal to the company calling for it to issue a public report detailing the potential pitfalls of excluding “viewpoints” and “ideologies” be explained from its policy of equal opportunities.

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Kroger last year settled a lawsuit filed by two former Arkansas employees who were fired after refusing to wear aprons to celebrate the LGBTQ+ community. (Stephen Zenner/SOPA Images/LightRocket via Getty Images/Getty Images)

NCPPR claimed to the SEC’s Corporate Finance Division that the proposal “addresses matters related to the ordinary course of business of the company” because it applies only to “Kroger’s management of its workforce and policies relating to employees.”

The foundation claims the SEC is itself complicit in viewpoint discrimination, allowing proposals against discrimination such as sexual orientation and gender identity, while not creating protections based on political viewpoints.

According to his Framework for Action: Diversity, Equity & Inclusion, Kroger “strives to reflect the communities we serve and foster a culture that empowers everyone to be their true selves.”

The company is also committed to “a policy of equal opportunity for all employees without regard to race, color, religion, sex, national origin, disability, sexual orientation or gender identity” in accordance with “The Kroger Co. Policy on Business Ethics” adopted by the Board of Directors .

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According to his Framework for Action: Diversity, Equity & Inclusion, Kroger “strives to reflect the communities we serve and foster a culture that empowers everyone to be their true selves.” (Google Maps / Google Maps)

“America First Legal is proud to act as co-counsel in this critical court case to ensure that no American, regardless of political ideology, is discriminated against,” the firm said in a press release. “The federal government has proven once again that it is willing to break the law to advance its partisan liberal agenda while ignoring Conservative concerns.”

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“For too long, big corporations — held hostage by leftist antagonists — have advanced ideological interests at the expense of shareholders,” said Gene Hamilton, who serves as vice president and general counsel for the AFL.

“And for far too long, major governments have facilitated not only their crusade against the interests of shareholders, but their crusade against the American people and the national interest. We are proud to represent our clients in this case and to fight discrimination of viewpoints in corporate America,” he added.

Gene Hamilton, general counsel of the AFL, said that large government agencies like the SEC have facilitated a “crusade” by companies against the interests of shareholders. (Saul Loeb/AFP via Getty Images/Getty Images)

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Kroger did not immediately respond to a request for comment from FOX Business, and an SEC spokesman declined to comment.