"There is no compelling basis to leave petitioners and issuers wondering whether or when the SEC will force them to comply with a rule this court has held to be unlawful multiple times over," the U.S. Chamber of Commerce, the Texas Association of Business and the Longview Chamber of Commerce, said in a Dec. 7 motion to vacate. "Instead, this court should put this case to rest and issue a final judgment vacating the rule."
In May, the SEC finalized the rule requiring companies to disclose daily stock buyback information either quarterly or semiannually. The required disclosures include the number of shares repurchased each day and the average price paid on that day.
Also under the rule, companies have to check a box indicating whether certain directors or officers traded in the relevant securities within four business days before or after the public announcement of an issuer's buyback plan or program.
The business groups also in May filed the lawsuit challenging the initiative, arguing that the SEC rule discourages companies from using stock buybacks and violates the APA and U.S. Constitution.
The court in its Oct. 31 decision elected not to vacate the rule and dismissed most of the plaintiffs' claims, except for the cost-benefit analysis violation.
But with no updated rule from the SEC, the business groups are pressing for further action.
"The SEC has conceded it has not corrected the rule and has given no indication that any correction is forthcoming," the groups said in their motion. "In addition, when petitioners notified the SEC that they would be filing this motion to vacate the rule and sought its position, counsel responded that the commission takes no position on it. Thus, the only remaining step for this court is to vacate the rule."
An SEC spokesperson could not immediately be reached for comment.
