The news in April, as in March, was dominated by the coming conflict over the SEC's climate risk disclosure rule. The battle lines have largely been drawn, and the sides have begun maneuvering for advantageous positions. In March, the final rule was given an effective date in May 2024, but the Commission has now stayed its effectiveness pending the outcome of the litigation. In light of the stay, the Commission asked the court to deny the accumulated motions for emergency stay of the rule. Soon after, a coalition of 18 states sought to join the litigation on the SEC's side. Legislatively, the House Financial Services Committee has advanced a resolution to disapprove the regulation.
In the courts, the big news involves the Supreme Court deciding that absent a misleading statement, pure omissions are not actionable as securities fraud. The ruling limits the type of federal securities fraud claims that may be brought by investors as the Court resolved a circuit split on whether a failure to make a disclosure required by Item 303 can support a private claim. Elsewhere, the Second Circuit affirmed the dismissal of Exchange Act claims against Coinbase due to insufficiently pleaded transaction-specific contracts. In the states, the Delaware Supreme Court held that the presence of one conflicted committee member precluded MFW cleansing of a controller-led spinoff.
Read the rest of the story and other securities news from Wolters Kluwer at VitalLaw.com.