In a lengthy and detailed opinion, the Fifth Circuit has rejected two petitions challenging the SEC’s approval of Nasdaq’s board diversity rules. The rules require most Nasdaq-listed companies to have women and minority directors on their boards or explain why they don’t. The petitioners had argued that the rules violated constitutional free speech and equal protection provisions and also violated the SEC’s obligations under the Exchange Act and under the Administrative Procedures Act (APA). A unanimous three-judge panel rejected these arguments, in effect upholding the rules. The Fifth Circuit’s opinion can be found here.
‘Enforcement 40’ for 2020
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