On November 22, 2023, the SEC announced an order postponing the effective date of the Repurchase Rule pending further Commission action. The rule was challenged in court and the SEC was required to "correct the defects" of the rule by November 30, 2023.
On December 1, the SEC submitted a letter to the Fifth Circuit stating it was unable to “correct the defects” of the rule within the required time period. Because the SEC was unable to address the issues in the Repurchase Rule, the Fifth Circuit will vacate the agency rule and the Repurchase Rule will not apply to the upcoming annual report season.
The Share Repurchase Disclosure Modernization Rule originally became effective on July 31, 2023 and was previously announced in this press release from the SEC.