Appeals court to rehear Nasdaq diversity rule challenge

A federal appeals court agreed to rehear a challenge by two conservative groups to Nasdaq’s board diversity rule related to the disclosure of women and minority membership on boards of companies listed on the stock exchange.

The 5th Circuit U.S. Court of Appeals, in its order Monday night setting a rehearing, also vacated a decision in October upholding the Nasdaq rule by a three-judge panel from the appeals court, which encompasses Texas, Louisiana and Mississippi.

The Nasdaq rule requires companies to disclose details about the diversity of their boards of directors and to either have a minimum number of women and minorities on their boards or explain why they do not.

The 5th Circuit’s order Monday said it will reconsider the challenge to the Securities and Exchange Commission’s approval of the Nasdaq rule, with the full lineup of judges on that court rehearing the case in a so-called en banc proceeding.

Source: Appeals court to rehear Nasdaq diversity rule challenge