The Heritage Foundation has initiated legal proceedings against Airbnb, alleging the company unlawfully excluded a shareholder proposal from its annual meeting materials. The lawsuit was filed in collaboration with American Conservative Values ETF (ACVF), another Airbnb shareholder, which also claims its proposal was wrongfully omitted. The Heritage Foundation is represented by Boyden Gray, while ACVF has enlisted Alliance Defending Freedom for representation.
Andrew Olivastro, chief advancement officer at The Heritage Foundation, stated: “Airbnb broke the law—plain and simple. SEC rules require companies to notify shareholders and allow a response if a proposal is excluded. Airbnb ignored those rules and ignored the law. It makes you wonder what other legal corners Airbnb may have cut. Heritage and ADF are suing to make one thing clear: shareholder rights aren’t subject to mood or politics—they’re protected by law.”
In December 2024, The Heritage Foundation submitted a proposal urging Airbnb to resist politically motivated demands to divest from certain vendors, specifically mentioning locations like Israel. Despite following all submission protocols, Airbnb claimed it never received the proposal. This claim stands in contrast to a FedEx delivery receipt signed by an Airbnb employee confirming delivery. Airbnb has denied knowledge of the proposal and suggested that FedEx might have forged the signature.
According to SEC regulations, companies must include proposals in their annual meeting materials unless they provide notice of exclusion along with reasons and an opportunity for proposers to respond. However, Airbnb did not inform Heritage about excluding its proposal nor provided any chance for recourse. Conversely, the company included a proposal from Connecticut Retirement Plans and Trust Funds that supports Environmental, Social, and Governance (ESG) initiatives.
Heritage’s December proposal encouraged resistance against activist pressures following events such as the October 7, 2023 attacks on Israel. It highlighted past instances where Airbnb succumbed to political demands—for example, its 2018 decision to delist properties in Israeli settlements within the West Bank due to historical disputes between Israelis and Palestinians.
Upon being informed of these exclusions in April 2025, Airbnb declined both immediate inclusion of the proposals for its June meeting or future consideration for 2026.
This lawsuit follows The Heritage Foundation’s ongoing efforts advocating for corporate accountability over ideological influence. By promoting transparency and fairness, Heritage seeks to encourage businesses to prioritize ethical standards over divisive agendas through coalition building and legislative advocacy.
