On March 6, 2024, the U.S. Securities and Exchange Commission (SEC) adopted final enhanced and standardized climate-related disclosure rules (the Final Rules). As noted in our client alert addressing the Final Rules, there are a growing number of legal challenges to the Final Rules. In the U.S. Court of Appeals for the Fifth Circuit (the Fifth Circuit), petitioners Liberty Energy Inc. and Nomad Proppant Services LLC sought review of the Final Rules and filed a motion seeking a stay pending review by the Fifth Circuit. On March 15, 2024, the Fifth Circuit granted the motion and imposed a temporary stay.

Additional litigation challenging the Final Rules is pending in a number of other U.S. courts of appeals. As a result, it is expected that the Judicial Panel on Multidistrict Litigation will use a lottery to select a court of appeals to hear the consolidated challenges. The Final Rules could have far-reaching implications for companies of all sizes and across industries, so we will continue to monitor this litigation and other updates related to the Final Rules.