U.S. District Court Upholds Conflict Minerals Rules

On July 23, Judge Robert L. Wilkins of the U.S. District Court for the District of Columbia rejected a lawsuit brought by the National Association of Manufacturers, the Chamber of Commerce of the United States of America and the Business Roundtable seeking to invalidate the SEC’s conflict minerals rules under a variety of theories. According to Judge Wilkins: “Finding no problems with the SEC’s rulemaking and disagreeing that the ‘conflict minerals’ disclosure scheme transgresses the First Amendment, the Court concludes that Plaintiffs’ claims lack merit.”

Barring any stay issued upon an appeal, this means that the conflict minerals rules will remain in effect, and companies that manufacture or contract to manufacture products with conflict minerals that are necessary to production or functionality will be required to file a Form SD, and potentially a Conflict Minerals Report, by May 31, 2014.

For further information, please see our October 26, 2012 client memorandum, which provides a general overview of the rules, and our May 31, 2013 client newsflash, which explains the helpful guidance issued by the SEC staff on May 30.