SEC Political Spending Rule Could Spur Investor Suits

Law360, New York (January 17, 2013, 8:04 PM EST) -- The U.S. Securities and Exchange Commission is mulling a proposal that would force publicly traded companies to disclose their political spending to shareholders, a requirement attorneys say could expose companies to lawsuits from investors who believe the contributions are a misuse of resources.

Campaign finance reform advocates originally petitioned the SEC to adopt a political spending disclosure rule in 2011, and the commission has received more than 300,000 comments on the petition.

Last month, the SEC added consideration of a political spending disclosure proposal to the...
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