April 22, 2014
Partner Bruce R. Kraus was quoted in the Compliance Week article, “Rethinking the Role of Free Speech in Corporate Disclosure.” The article discusses a ruling by the U.S. Court of Appeals for the District of Columbia that struck down part of an SEC rule requiring companies to disclose on their websites if any of their products might contain conflict minerals. The court decided that these online disclosures amounted to “compelled speech,” which would violate the First Amendment rights of the companies. The article notes that Mr. Kraus does not see large-scale implications of this decision as he stated, “does this have the potential to swallow up all securities laws because they force companies to speak? Not at all; this is an extremely tiny, narrow First Amendment holding at the tag end of a big rule that was 99 percent upheld.”
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