Jump to Navigation
Jump to Content

Natural Resources Defense Council v. Securites & Exchange Comm'n

Citation: 5 ELR 20074
No. No. 409-73, 389 F. Supp. 689/7 ERC 1199/(D.D.C., 12/09/1974)

The Securities and Exchange Commission failed to comply with the procedural requirements of the Administrative Procedure Act in formulating and promulgating its regulations requiring corporate disclosure of the effect of environmental laws on corporate financial condition, and of environmental litigation involving the corporation. Under NEPA and the securities laws, the SEC has broad rulemaking authority regarding what information it will require corporations to disclose in various filings with the agency, and plaintiffs' interest that this authority be fully used is within the zone of interests protected by the statutes. The court determines that the SEC corporate disclosure regulations were not the result of an informed decision-making process as required by the APA, and that in any case the SEC failed to provide an adequate statement of the basis and purpose of the rules. Without such a statement, the public was not given adequate notice that the regulations were intended to meet fully the agency's NEPA responsibilities. The court therefore remands the case to the SEC for further rulemaking within 120 days, but leaves the challenged regulations in effect pending promulgation of the new rules.

Counsel for Plaintiffs
J. G. Speth
Edward L. Strohbehn
Natural Resources Defense Council, Inc.
1710 N Street, N.W.
Washington, D.C. 20036

Roger S. Foster
Center for Law and Social Policy
1751 N Street, N.W.
Washington, D.C. 20036

Counsel for Defendants
Glynn L. Mays
Office of the General Counsel
Securities and Exchange Commission
500 N. Capitol Street
Washington, D.C. 20549