In July 2022, the SEC issued a final rule to rescind the 2020 critical reforms subjecting proxy advisory firms—unregulated third parties with outsized influence on shareholder votes and manufacturers’ corporate governance policies—to reasonable SEC oversight just like every other participant in the securities markets. The NAM sued the SEC in the Western District of Texas arguing that the 2022 recission is arbitrary and capricious as well as procedurally defective. We have asked the court to vacate the 2022 recission in its entirety and declare that the recession is unlawful and void.
Unfortunately, on December 4, 2022, the court denied the NAM’s motion for summary judgment and granted the SEC's cross-motion.