Nasdaq's Board Diversity Rules Struck Down By 5th Circuit

On December 11, 2024, the U.S. Court of Appeals for the Fifth Circuit vacated the SEC's approval of Nasdaq's board diversity disclosure rules. These rules were approved by the SEC on August 6, 2021 and required listed companies to (i) disclose statistical information regarding the diversity of the company's board and (ii) on a phased basis, have, or explain why they do not have, at least two diverse directors on the board of directors. Nasdaq has indicated that it does not intend to seek further review of this decision. Although listed companies may continue to provide disclosure on diversity on a voluntary basis, for now companies will no longer be required to follow Nasdaq's board diversity disclosure rules.