Ninth Circuit Decides Appeal Over Preliminary Injunction of California SB 253, SB 261
The Ninth Circuit has ruled on the appeal of a denied preliminary injunction against SB 253 and SB 261, California's climate disclosure mandates; the source does not disclose the outcome or reasoning, so the opinion must be checked.
The Ninth Circuit issued a decision on the appeal of the Central District of California's earlier denial of a preliminary injunction sought against SB 253 and SB 261, California's climate-related disclosure statutes. The available material does not state whether the panel affirmed, vacated, or remanded the denial, nor does it describe the reasoning, so the operative holding — including any limitation on the mandates' scope, any timing relief, or the treatment of the separate reporting obligations under each statute — must be confirmed against the slip opinion before it is relied on.
Why sophisticated counsel and clients care: both statutes reach well beyond the largest registrants, with SB 253's revenue thresholds and SB 261's broader in-state revenue trigger drawing in a wide range of public and private companies, including non-California entities with California operations. A ruling on whether these mandates may proceed while litigation continues is therefore a gating question for emissions data collection, supplier engagement, controls over sustainability disclosures, and assurance readiness for reporting cycles now under way.
Concrete next steps: read the opinion and any dissent, confirm any deadlines or transition provisions it affects, and reassess disclosure-control and attestation workstreams for affected entities. Also watch for rehearing petitions or further appellate review, and for company and investor communications describing compliance posture in light of the decision.