SEC isn't required to make companies reveal political contributions
A federal judge has tossed aside an effort to force the Securities and Exchange Commission to adopt a rule requiring publicly traded companies to disclose their political contributions.
Reuters reported Monday that U.S. District Judge Rosemary Collyer in Washington, D.C., dismissed a lawsuit brought by the nonprofit Campaign for Accountability after finding that there was no “clear legal duty” on the part of the SEC to adopt this rule. The SEC had argued that it had discretion over whether to commence the rule-making procedure and was not under an obligation to do so.
The Campaign for Accountability had originally sued in May on behalf of Stephen Silberstein, an Aetna shareholder who was trying to force the company to publicize its political donations. Silberstein had argued that mandatory disclosure of political donations was necessary so that shareholders would be able to determine whether they were in the best interests of the company. Daniel Stevens, a spokesman for the Campaign for Accountability, told Reuters that the group was disappointed in the ruling and that the group would consider filing an appeal.
The SEC declined to comment to Reuters.
