U.S. appeals court rejects Nasdaq's diversity rules for company boards

Nasdaq stands by proposal aiming to boost number of women, racial minorities, LGBTQ

20241213 Nasdaq file photo

The Fifth U.S. Circuit Court of Appeals in New Orleans said on Dec. 13 in its ruling that the SEC should not have approved Nasdaq's proposed diversity policy. © AP

(AP) -- An appeals court in Louisiana has ruled that Nasdaq can't require diversity on the boards of companies that list on the exchange.

The decision comes more than three years after the Securities and Exchange Commission approved Nasdaq's proposal to boost the number of women, racial minorities and LGBTQ people on U.S. corporate boards.

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