SEC Poised to Rework Stock Buyback Rule After Court Tosses It

The Securities and Exchange Commission is likely to consider a do-over for a hotly contested rule on corporate stock buybacks after a federal appeals court struck it down.

The US Court of Appeals for the Fifth Circuit vacated the rule on Dec. 19, after previously finding the SEC failed to conduct a proper analysis of the rule’s costs and benefits. The rule required companies to disclose more information about stock repurchases, including their rationale.

Barring further appeals that save the rule, attorneys expect the SEC will propose a new version as soon as next year.

The rule has political support, ...