On May 2, the SEC issued a partial stay of the Conflict Minerals Rule. This partial stay implements the substance of the statement of the Director of Corporation Finance that was released on Tuesday, April 29th. Our blog post of April 29th summarizes the SEC Statement.
As they indicated they would, the trade groups that challenged the Conflict Minerals Rule filed a motion today with the D.C. Court of Appeals seeking a stay of the implementation of any portion of the Conflict Minerals Rule.
The groups argued that the required filings (as modified by the SEC’s partial stay) will not accomplish the objectives of Dodd-Frank Section 1502 without the “compelled speech” that is no longer required. They requested that the Conflict Minerals Rule be stayed until the District Court (to which the case was remanded) makes a decision regarding the appropriate remedy. The groups asked for a decision on their motion by May 26 – just 7 days before the first conflict minerals disclosures are required to be filed with the SEC.