>The U.S. Court of Appeals for the 5th Circuit struck down a Nasdaq rule that sought to promote diversity on corporate boards, representing the latest blow to those efforts in the private sector. In a 51-page opinion issued Wednesday, nine of 17 judges on the full 5th Circuit found the rule violates the Securities Exchange Act of 1934. >“In sum, Congress passed the original Exchange Act primarily to protect investors and the American economy from speculative, manipulative, and fraudulent practices,” the panel wrote. “SEC may not approve even a disclosure rule unless it can establish the rule has some connection to an actual, enumerated purpose of the Act.” >Eight judges dissented, saying the rule was consistent with the law and merely standardized relevant information sought by investors. The Securities and Exchange Commission approved the rule because the law “doesn’t permit the SEC to displace Nasdaq’s private business judgment — informed by investor behavior — with agency policy priorities,” the dissenters wrote. . . [Source](https://www.washingtonpost.com/business/2024/12/12/nasdaq-diversity-rule-overturned/)