SEC wins dismissal of lawsuit challenging tighter rules on shareholder proposals

(Reuters) -A federal judge on Thursday dismissed a lawsuit challenging U.S. Securities and Exchange Commission rule changes that made it harder for shareholders to file proposals at companies' annual meetings, including for reforms on environmental, social and governance (ESG) issues. U.S. District Judge Reggie Walton in Washington, D.C. rejected arguments that the SEC arbitrarily and capriciously adopted the changes, including on the alleged pretext it supported corporate opposition to reforms on contentious issues such as climate change and workplace diversity. The SEC was required to determine whether the changes would "promote efficiency, competition, and capital formation, and it did so," Walton wrote in a 64-page decision.