WASHINGTON, DC: The US Chamber of Commerce has waded into the Regulation FD argument by filing court papers disputing the rule's legitimacy.
The Chamber submitted a friend-of-the-court brief on behalf of Siebel Systems, which is fighting a Reg FD violation charge by the SEC.
Stephen Bokat, EVP of the National Chamber Litigation Center, the legal arm of the Chamber, said that the organization's objections are twofold. "One, we don't think the [SEC] has the statutory authority to pass the rule," he said.
"Secondly, we think that they're regulating speech in an unconstitutional manner."
Bokat said the Chamber's communication efforts on the issue included press alerts and newsletters with updated litigation information.
Siebel Systems has been charged with two violations of Reg FD since the rule was passed in August 2000. The regulation mandates that material information about a company be disseminated to the general public rather than to selective audiences.