November 28, 2023
SEC’s Repurchase Disclosure Rule: Court Signs Death Warrant
In what may be an ominous sign for the SEC’s share repurchase disclosure rule, the 5th Circuit has denied the Commission’s motion to request more time to substantiate its decision to adopt the new requirements. I blogged yesterday that the SEC issued a stay order for the rule at the same time that it filed this court motion. This Gibson Dunn blog explains what will happen next:
As a result, the SEC has until November 30 to correct the deficiencies the court had found with the SEC’s rulemaking, after which we expect the court will consider a renewed motion from the petitioners to vacate the Repurchase Rule.
The blog points out that companies can rely on the stay until the SEC or the Fifth Circuit take additional action on the Repurchase Rule. See this blog from Cooley’s Cydney Posner for more details about the litigation.
– Liz Dunshee