The Liberty Justice Center has achieved a notable victory in the legal case against the Securities and Exchange Commission (SEC) regarding climate change rules. The SEC announced it will cease defending the controversial regulations challenged in the case, marking a pivotal moment for free speech and limiting governmental overreach.
The SEC informed the U.S. Court of Appeals for the Eighth Circuit of its decision to withdraw defense of the rules and forego oral arguments. According to a letter signed by SEC counsel, this decision stemmed from a lack of support for the rules among the majority of the current Commissioners, prompting the Commission to alter its litigation stance.
In March 2024, the Liberty Justice Center, in collaboration with the Pelican Institute, filed a legal challenge on behalf of the National Legal and Policy Center and the Oil and Gas Workers Association. They contested that the rules required extensive disclosure from corporations on climate change issues, unrelated to the SEC's main goal of regulating securities and protecting investors.
The lawsuit posited that the rules infringed upon the First Amendment by compelling companies to express viewpoints on this issue and argued that the SEC exceeded its authority since these rules were not legislatively sanctioned by Congress.
In February 2025, the SEC’s Acting Chairman indicated the commissioners' overall opposition to the rules, influencing the Commission's decision to step back from defending its stance and thus conceding the case.
Jacob Huebert, President of the Liberty Justice Center, remarked, "These illegal rules never should have been adopted. They’re about forcing companies to support an ideological agenda, not regulating securities and protecting investors.” Huebert agreed with the SEC's choice to abandon the defense of these rules.