Washington, D.C. — Tom Quaadman, Executive Vice President of the U.S. Chamber’s Center for Capital Markets Competitiveness (CCMC), released the following statement in response to the Chamber’s victory in its lawsuit against the Securities and Exchange Commission’s stock buyback rule.
“Yesterday’s decision by the Fifth Circuit is a victory for the ability of companies to make business decisions free from government micromanagement. Stock buybacks are an important tool for companies to grow their businesses and return value to shareholders — including millions of Americans saving for retirement. The court ruled that the SEC acted arbitrarily and failed to substantiate the costs and benefits of its rule, which reflects deeper problems regarding the commission’s rulemaking process.
“The regulatory tsunami caused by the SEC’s hurried rulemaking process is damaging American capital markets. The Chamber will not shy away from litigation where necessary to protect companies’ abilities to act in the best interests of their investors.”