The Securities and Exchange Commission appeared in court again, after being sued over its approval of a diversity rule by the Nasdaq.
The diversity rule requires companies listed on the Nasdaq to have a board member who identifies as female, and someone from a minority or LGBTQ group. And if the Nasdaq listed company doesn’t do this, they will have to explain why.
National Center for Public Policy Research, a conservative think tank and another group are trying to overturn the rule. The groups argue that requiring companies to have board members based on gender and orientation is unconstitutional.
The SEC says the first and fifth amendments don’t apply to Nasdaq, because it is a private entity.
NTD spoke with Scott Shepard from the National Center for Public Policy Research about the lawsuit.