As blogged previously, further to our recent report (see “5th Circuit Agrees SEC Violated APA in Adoption of Share Buyback Rule”), following the Fifth Circuit’s recent determination that the SEC’s adoption of the share buyback rule was arbitrary and capricious in violation of the APA, the SEC announced its issuance of an Order postponing the effective date of, and staying, the rule pending further Commission action. As noted in Gibson Dunn’s post, the court denied the SEC’s request for additional time to fix the rule.
Cooley reported that in a letter to the court on Friday, December 1, the SEC conceded defeat, meaning that the court should now vacate the rule. The SEC can then decide whether to appeal the decision or propose a new rule.
See “SEC Loses Bid for Extra Time to Revise Stock Buyback Rule” (WSJ) and additional resources on our Capital Allocation/Capital Structure page.