On March 21, 2024, the Judicial Panel on Multidistrict Litigation randomly selected the U.S. Court of Appeals for the Eighth Circuit to hear all cases challenging the Securities and Exchange Commission's final climate disclosure rule. Within the first ten days after the rule's issuance, nine petitions were filed, in six different circuits, challenging the rule. The Second, Fifth, Sixth, Eighth, Eleventh, and D.C. Circuits received at least one petition each. Pursuant to 28 U.S.C. § 2112, the Judicial Panel on Multidistrict Litigation randomly selected the one circuit in which all cases will be consolidated.
On March 22, 2024, the courts of appeals began to transfer the challenges to the Eighth Circuit. In its transfer order, the Fifth Circuit dissolved the administrative stay it had previously issued. All future proceedings, including any litigation regarding a stay, will occur in the Eighth Circuit.
Subsequently, on April 4, 2024, the SEC issued an Order pausing the implementation of its rules available here. The Order notes the stay is limited to the final rules challenged in the litigation consolidated in the Eighth Circuit and does not stay any other Commission rules or guidance.
Our March 8 client alert on the new rule is available here.