5th Circuit Strikes Down Nasdaq Board Diversity Rule in 9-8 Vote

Dec 12, 2024, 01:34 AM

A federal appeals court has struck down Nasdaq's board diversity rule, which required companies listed on the exchange to have at least one woman, person of color, or LGBTQ member on their boards or explain why they do not. The decision, made by the 5th Circuit Court of Appeals in a 9-8 en banc vote, marks a significant setback for Nasdaq's yearslong push to promote diversity and inclusion in corporate governance. The rule, aimed at increasing representation of women and minorities on corporate boards, faced criticism and legal challenges, ultimately leading to its rejection. This also represents a broader DEI setback.