US appeals court tosses Nasdaq board diversity rules

(Reuters) – A U.S. appeals court on Wednesday ruled that Nasdaq could not impose rules requiring companies listed on the exchange to have women and minority directors on their boards or explain why they do not.

The New Orleans-based 5th U.S. Circuit Court of Appeals on a 9-8 vote sided with two conservative advocacy groups in finding that the rules approved by the U.S. Securities and Exchange Commission ran afoul of federal securities law.