Investor Lawsuit Seeks to Overturn Trump-Era SEC Rule Revision

For decades, SEC rule 14a-8 has allowed shareholders to submit proposals for inclusion in a company’s proxy statement asking the company to consider additional material disclosures, policies, or governance changes. In September 2020, the SEC imposed a new rule that sharply restricts shareholders’ ability to submit proposals through dramatically increased requirements for the amount of stock held, the duration of stock ownership, and the votes required for resubmitting proposals.

In June of 2021, ICCR, As You Sow and James McRitchie filed a complaint in the District Court for the District of Columbia challenging the SEC's recent amendments. The complaint, which you can read here, charges that the SEC’s rule changes, promulgated under the previous administration, are unlawful under the Administrative Procedure Act (APA), and seeks a judgment to have them vacated.

Read the June 2021 press release here. Read more about the ongoing shareholder rights campaign here.

Timeline of Events

Recent Articles Related to the Lawsuit

July 27, 2021 - IHS Markit - Shareholders Forging Ahead with Lawsuit over US SEC Rule Limiting Ability to Submit Resolutions
June 18, 2021 - UUA.orgInvestors File Suit to Overturn Trump Era SEC Rule
June 15, 2021 - Financial Advisor - $4 Trillion Investor Coalition Sues SEC to Overturn Shareholder Proposal Limits  
August 10, 2020 - Value Walk - Lawsuit Challenges SEC's Weakening of Rule 14a-8

Older Articles related to the SEC lawsuit: