W&L Law’s Haan Quoted in Bloomberg News on SEC Legal Challenge Professor Sarah Haan was quoted extensively in a Bloomberg Law news article on a challenge brought by business groups to a new SEC disclosure rule.

By Law Communications
August 22, 2023

Washington and Lee law professor Sarah Haan was quoted extensively in a Bloomberg Law news article on a challenge brought by business groups—including the U.S. Chamber of Commerce—to a new SEC disclosure rule.

The challenge involves an SEC rule adopted in May that requires companies to disclose to investors a rationale for repurchasing stock shares. The business group is arguing that the rule violates First Amendment protections against compelled speech.

“For any court to suddenly subject a garden variety disclosure mandate like this to rigorous First Amendment review would be a huge sea change in the way that the courts think about securities disclosure,” said Haan.

This effort is one of several recent challenges to SEC mandates, including one involving climate disclosure requirements.

“You’re starting to see a multi-prong First Amendment attack on the ability of the Securities and Exchange Commission to mandate all kinds of disclosure,” said Haan. It could be “like opening up Pandora’s Box.”

The full article, “SEC Disclosure Rules Face ‘Sea Change’ Challenge From Business,” is available (with subscription) on the Bloomberg News website.

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