Court docket Sends Inventory-Buyback Rule Again to SEC

WASHINGTON—A conservative appeals courtroom dealt a setback to the Securities and Alternate Fee’s plan to present traders extra details about inventory buybacks after enterprise teams challenged the rule.

Responding to a Could lawsuit by the U.S. Chamber of Commerce and two Texas-based enterprise teams, a three-judge panel on the Fifth Circuit Court docket of Appeals dominated that the SEC’s new necessities for share repurchases had been “arbitrary and capricious.” The judges agreed with the teams’ assertion that the SEC didn’t adequately clarify the rule’s prices and advantages.