On April 4, 2024, the SEC issued a stay of its final climate-related disclosure rules. The SEC adopted the long-awaited final rules in March after receiving more than 24,000 comment letters. WilmerHale’s summary and analysis of the final rules can be found on the Keeping Current: Disclosure and Governance Developments blog.

While the final rules were scaled back in many respects from the proposed rules, several entities and states filed a flurry of petitions in multiple circuit courts of appeal. In total, nine petitions were filed in six circuit courts of appeal. On March 15, 2024, the U.S. Court of Appeals for the Fifth Circuit granted a motion filed by two petitioners seeking an administrative stay of the final rules.

On March 21, 2024, the Judicial Panel on Multidistrict Litigation selected by lottery the U.S. Court of Appeals for the Eighth Circuit as the venue for hearing a case comprising the consolidated lawsuits. The following day, the Fifth Circuit dissolved its previous administrative stay. Multiple petitioners then filed motions with the Eighth Circuit seeking a stay of the final rules, and while these motions were still pending, the SEC issued its stay of the final rules pending the completion of judicial review of the consolidated petitions.

The Eighth Circuit has yet to set a briefing schedule for the consolidated case, which will likely provide insight into the timing of any resolution. WilmerHale will continue to closely monitor developments related to the litigation and provide updates on the developments and potential implications for clients’ compliance obligations.