Litigation Update: Alliance for Fair Board Recruitment v. SEC
Event Video
On December 11, 2024, in Alliance for Fair Board Recruitment v. SEC, the Fifth Circuit Court of Appeals held that the Securities and Exchange Commission (SEC) lacked the authority to approve The Nasdaq Stock Exchange’s Nasdaq board diversity rule. The rule would have compelled "the companies listed on [Nasdaq's] exchange to disclose information about the racial, gender, and sexual characteristics of their directors, and to have (or explain why they do not have) at least two directors who meet Nasdaq’s definition of ‘diverse.’”
The case was decided by a 9-8 vote, and the Court’s action overrules a Fifth Circuit panel’s prior decision upholding the Rule. Judge Oldham’s opinion rejects the SEC’s argument that the rule is related to any of the purposes of the Exchange Act in an opinion that does a deep dive on the history of the Act and applies the Major Questions Doctrine to the issue.
Please join us for a litigation update on this case from Jonathan Berry, who represented the Alliance for Fair Board Recruitment against the SEC.
Featuring:
- Jonathan Berry, Managing Partner, Boyden Gray PLLC
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