A federal appeals court ruled Wednesday that Nasdaq can’t enforce mandatory rules for companies listed on the exchange. Women and minority directors on their boards Or explain why they don’t do it.
The New Orleans-based 5th U.S. Circuit Court of Appeals sided with two conservative advocacy groups in a 9-8 vote, finding that rules approved by the Securities and Exchange Commission are contrary to federal securities law.
Those rules were challenged by the National Center for Public Policy Research, a conservative think tank, and the Alliance for Fair Board Recruitment, a group founded by Joe Biden. affirmative action opponent edward blum,
In October 2023, a three-judge panel of the 5th Circuit comprised entirely of Democratic presidential appointees upheld the SEC’s 2021 approval decision. Nasdaq rulesSaying that the regulator acted within its authority.
But the fully conservative-majority court opted to reconsider the case. All nine justices in the majority were appointed by Republican presidents, including the author of the decision, U.S. Circuit Judge Andrew Oldham, who was appointed by President-elect Donald Trump in his first term.
