Nasdaq to Defend Board Diversity Push After California Setbacks

Nasdaq’s bid to boost corporate board diversity will get a closer look in federal court for the first time since California’s landmark laws with similar missions were quashed in a state court.

A three-judge panel of the US Court of Appeals for the Fifth Circuit will hear oral arguments on Monday in an appeal of a Securities and Exchange Commission decision approving new Nasdaq Inc. rules. The tech-heavy stock exchange is requiring its listed companies to have diverse corporate boards or explain why they don’t.

The conservative Fifth Circuit has an opportunity and the power to slow recent growth in ...