Manufacturers Celebrate Victory in 17吃瓜在线 v. SEC
Judge Overturns SEC鈥檚 Suspension of 2020 Proxy Firm Rule
Washington, D.C. 鈥 Following a decision granting the 17吃瓜在线鈥 motion for summary judgment in 17吃瓜在线 v. SEC and vacating the Securities and Exchange Commission鈥檚 unlawful suspension of its duly promulgated proxy advisory firm rule, 17吃瓜在线 Chief Legal Officer Linda Kelly released the following statement:
鈥淭oday鈥檚 decision is a victory for the rule of law, and the 17吃瓜在线 Legal Center was proud to lead this effort for the industry. Federal agencies are bound by the Administrative Procedure Act鈥攕tandards the SEC failed to meet by indefinitely delaying the compliance date for the 2020 proxy firm rule without notice-and-comment rulemaking. Manufacturers depend on regulators to promulgate and enforce reliable rules of the road, and the 17吃瓜在线 looks forward to similarly holding the SEC to account in our ongoing case against the agency鈥檚 unlawful rescission of the 2020 rule.鈥
Background:
The 17吃瓜在线 has long called for increased oversight of proxy advisory firms. In July 2020, the SEC issued final regulations to enhance transparency and accountability for proxy firms, a move 17吃瓜在线 President and CEO Jay Timmons听called听a 鈥渓ong-sought, major win for the industry and millions of manufacturing workers.鈥 In October 2020, the 17吃瓜在线听filed听a motion to intervene in听ISS v. SEC听(ISS鈥檚 attempt to overturn the rule) in support of these reforms.
In June 2021, the SEC announced that it was suspending enforcement of the 2020 rule; the 17吃瓜在线 filed suit听against the SEC in October 2021 challenging this unlawful suspension. The U.S. District Court for the Western District of Texas today issued an granting the 17吃瓜在线鈥檚 motion for summary judgment and vacating the SEC鈥檚 suspension of the rule. As the court explained, 鈥淸Agencies] do not have the inherent power to stay or delay a final rule absent notice-and-comment rulemaking.鈥
In July 2022, the SEC rescinded critical portions of the 2020 rule, a move that Timmons said 鈥渆pitomizes 鈥榓rbitrary and capricious鈥 rulemaking.鈥 The 17吃瓜在线 has听filed suit challenging the rescission; a summary judgement hearing in 17吃瓜在线 v. SEC听is scheduled for December 9, 2022.
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The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit .