Public Company Watch: November/December 2024

This edition of the Public Company Watch highlights critical updates and regulatory changes affecting public companies. Staying informed on these topics is crucial for effective compliance and strategic planning.

Highlights include:

• Regulation FD Enforcement Action: A public company was charged with violating Regulation FD in the first enforcement action in which the SEC identified a non-intentional selective disclosure issue.
• Nasdaq Board Diversity Rules Vacated: Nasdaq-listed companies are no longer required to include board diversity metrics in public filings but may choose to retain certain disclosures on a voluntary basis.
• Exchanges Propose Rules Limiting Use of Reverse Stock Splits: Nasdaq and the NYSE have proposed rules that would limit a listed company’s ability to utilize reverse stock splits to regain compliance with the applicable exchanges’ minimum price criteria.
• New HSR Rules Finalized: Long-anticipated updates to the HSR were finalized, though it is likely their effective date will be pushed back by a regulatory freeze after President‑elect Trump’s inauguration. 
• New California Employment Laws: Recently enacted legislation in California ushers in a new era of worker protections.
• The Supreme Court Dismisses Cert: The Supreme Court dismissed writs of certiorari in two cases against public companies after hearing oral arguments.