The SEC scored a victory in the U.S. Court of Appeals for the District of Columbia Circuit in a case filed in October 2012 by the U.S. Chamber of Commerce, the Business Roundtable, and the National Association of Manufacturers.   The plaintiffs challenged the SEC's rule on disclosure of the use of conflict minerals on grounds that aspects of the rule were arbitrary and capricious under the Administrative Procedure Act and claiming that the disclosures required by the SEC and by Congress run afoul of the First Amendment.  In a 63-page decision in favor of the SEC, the Court found no problems with the SEC's rulemaking and disagreed that the "conflict minerals" disclosure scheme transgressed the First Amendment. 

Our client alert discussing the adoption of the conflict minerals rule is available here.  Issuers subject to the conflict minerals rule first became required to comply with the rule for the calendar year that began January 1, 2013 and must file their first reports on new Form SD by May 31, 2014.  The calendar year reporting requirement applies to all issuers no matter what their fiscal year may be.

For companies that were on the sidelines either hoping the case would lead to a delay or a de minimis reporting exception, a proactive approach to meet the fast approaching May 2014 reporting deadline is now advisable.  That group is sizeable as the Wall Street Journal this week reported that two-thirds of respondents to a new survey say their companies are in the early stages or have not yet started compiling information needed to meet the SEC's requirements for conflict minerals reporting.   A copy of the article is available here.

This article is for general information and does not include full legal analysis of the matters presented. It should not be construed or relied upon as legal advice or legal opinion on any specific facts or circumstances. The description of the results of any specific case or transaction contained herein does not mean or suggest that similar results can or could be obtained in any other matter. Each legal matter should be considered to be unique and subject to varying results. The invitation to contact the authors or attorneys in our firm is not a solicitation to provide professional services and should not be construed as a statement as to any availability to perform legal services in any jurisdiction in which such attorney is not permitted to practice.

Duane Morris LLP, a full-service law firm with more than 700 attorneys in 24 offices in the United States and internationally, offers innovative solutions to the legal and business challenges presented by today's evolving global markets. Duane Morris LLP, a full-service law firm with more than 700 attorneys in 24 offices in the United States and internationally, offers innovative solutions to the legal and business challenges presented by today's evolving global markets. The Duane Morris Institute provides training workshops for HR professionals, in-house counsel, benefits administrators and senior managers.