New SEC Climate Rules Stayed By Fifth Circuit – For Now

On March 6, 2024, the SEC adopted expansive new climate disclosure rules (the "Rules"). As noted in our March 12, 2024 client alert summarizing and analyzing the new Rules, litigation challenging the Rules was already pending. Additional litigation seeking to strike down the Rules is currently pending in four federal courts of appeals—the U.S. Courts of Appeals for the Fifth, Sixth, Eighth and Eleventh Circuits—and we expect that additional challenges will be filed in the federal courts of appeal. In addition, the U.S. Courts of Appeals for the Second and DC Circuits are considering challenges by environmental groups claiming that the Rules do not go far enough.

In the Fifth Circuit case, Liberty Energy Inc. and Nomad Proppant Services LLC (the "Petitioners") sought review of the Rules by the Fifth Circuit, and shortly thereafter filed a motion seeking an administrative stay pending review by the Fifth Circuit. The Petitioners argued that, without a stay, they