The SEC's Share Repurchase Rule May Not Be Fixable…

A few weeks ago, I blogged that the Fifth Circuit had dealt the SEC a blow by ruling that the share repurchase disclosure rules it adopted back in May were "arbitrary and capricious" under the Administrative Procedure Act in response to a challenge brought by the U.S. Chamber of Commerce. The Court gave the SEC 30 days to try to fix the rule, including a request that the SEC substantiate the rule's costs and benefits.

On Thanksgiving Eve, the SEC announced an order postponing the effectiveness of the rule pending further SEC action. At the same time, the SEC filed a motion asking the Court for an extension of time to correct the defects. The Chamber opposed the motion, and on Sunday, the court issued this order denying the SEC's request for an extension.

The 30-day clock to fix the rule runs out later this week. Time will tell how this one plays out.