Skip to main content
Home
Home

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

Public Chatter

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

view of people in a conference room

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.

Print and share

Explore more in

Blog series

Public Chatter

Public Chatter provides practical guidance—and the latest developments—to those grappling with public company securities law and corporate governance issues, through content developed from an in-house perspective.   

View the blog
Home
Jump back to top