A federal appeals court has swiftly rejected a Republican-led challenge to a Biden administration requirement for investment managers to reveal more information about how they oversee funds and handle climate proposals from shareholders.
The unanimous ruling Friday from the 5th U.S. Circuit Court of Appeals, which heard arguments on the matter in late April, tossed out the lawsuit against the Securities and Exchange Commission, finding the states did not have standing to bring their case.
Texas and other states had argued that they would be harmed as investors because investment funds would pass on the costs of compliance.
But judges said in the unsigned 5th Circuit opinion that there is no guarantee that regulated parties will pass their expenses on to consumers and that the states provided “only speculation” about the possibility of increased costs to investors.
