US: Fifth Circuit Lifts Stay on SEC’s Climate Rules As Petition Moved to Eighth Circuit

The U.S. Fifth Circuit Court of Appeals has lifted its stay of the climate-related disclosures rules adopted by the U.S. Securities and Exchange Commission (the “SEC”), following the selection of the U.S. Court of Appeals for the Eighth Circuit as the court in which to consolidate the multiple petitions for review of the rules. This means the rules are in place again, although they have not yet been published in the Federal Register so are not yet effective. We expect that the petitioners will request the Eighth Circuit to issue a stay as well. 

The lawsuit was just one of at least four legal challenges brought shortly after the SEC’s adoption of the rules, which mandate climate-related disclosures from SEC registrants, including foreign private issuers. Three of the petitions to review the rules were filed by different coalitions of Republican states, in the Fifth Circuit, the Eighth Circuit and the Eleventh Circuit. The Sierra Club has also filed a petition for review in the D.C. Circuit, arguing that the SEC arbitrarily decided to remove robust emissions disclosure requirements and other key elements from the proposed rule. 

We will continue to monitor developments regarding the rules and encourage you to contact us if you have any questions.