SEC Stock Buyback Rule Knocked Back by Federal Appeals Court (2)

A federal appeals court sent back to the Securities and Exchange Commission a rule that required companies to provide more information about stock repurchases, finding the rule’s adoption was arbitrary and capricious.

The US Court of Appeals for the Fifth Circuit said the SEC failed to conduct a proper analysis of the costs and benefits of the rule. The SEC must show improperly motivated buybacks are a genuine problem, the court found, sending the rule back to the agency to correct the deficiency.

The ruling is a partial win for business groups, including the US Chamber of Commerce, which ...