Conflict Minerals Rule Update: SEC Issues Order Confirming Guidance and Denies NAM Motion for Stay

On May 2, 2014, the SEC issued an order partially staying its Conflict Minerals Rule. Essentially, the order reiterates the SEC’s April 29, 2014, guidance that the Commission will not require companies subject to the conflict minerals reporting requirements to state in their conflict minerals disclosures whether or not their products are “DRC conflict free” in light of the U.S. Court of Appeals for the District of Columbia’s holding that the Rule’s compelled designation of products as not “DRC Conflict Free” is unconstitutional. To read the full order, click here.

Significantly, in a footnote, the order denies a motion for a complete stay of the Rule filed by the National Association of Manufacturers, the Chamber of Commerce and Business Roundtable on April 30. In a separate statement made on April 30, NAM promised to file a motion for injunctive relief with the U.S. Court of Appeals for the D.C. Circuit if the SEC denied its motion; we are monitoring the Court’s docket and will post an additional update as soon as NAM files the anticipated motion.

 

Topics:  Conflict Mineral Rules, First Amendment, Manufacturers, NAM, SEC

Published In: Civil Procedure Updates, Civil Remedies Updates, General Business Updates, Constitutional Law Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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