An opponent of affirmative action is challenging the U.S. Securities and Exchange Commission’s approval of
The Alliance for Fair Board Recruitment, which has also taken legal action against California over its requirement for corporate board diversity, filed a petition for a review of the SEC’s decision to a federal appeals court last week.
Under the rule, which was approved earlier this month, companies listed on Nasdaq must have at least one self-identified female board member and at least one who identifies as a member of an underrepresented minority or LGBTQ — or explain why there isn’t.
“The race, sex and sexual identity board quotas required by Nasdaq are unfair and illegal,” Edward Blum, president of the alliance, said in a press release Wednesday. “This rule violates our nation’s civil rights laws and Constitution and should be struck down by the courts without delay.”
The court action is latest in a series of lawsuits Blum has brought challenging diversity measures. He has sued against affirmative action policies at the University of Texas and has pushed courts to block Harvard University from considering race in admissions.
A representative for Nasdaq declined to comment and the SEC didn’t immediately respond to an emailed request for comment.
In its decision, the SEC said the rule wouldn’t impose “any burden on competition that is not necessary or appropriate.”
The case is Alliance for Fair Board Recruitment v. Securities and Exchange Commission, 21-60626, U.S. Court of Appeals for the Fifth Circuit (New Orleans).
