Nasdaq sued by conservative groups over diversity requirements

Yahoo Finance Live anchors discuss conservative groups suing the Nasdaq over racial and gender diversity requirements for companies.

Video Transcript

AKIKO FUJITA: Well, the NASDAQ is being sued by conservative groups over racial and gender diversity requirements for listed companies, saying the targets add up to an illegal racial and gender quota. Currently, the NASDAQ requires listed companies to disclose the gender and ethnic composition of their boards and will eventually require company boards to reach a set minimum diversity target.

Now the NASDAQ said in the court, in court, the rules are disclosure requirements that try to make companies more transparent, and that since the rule was not developed through the US government, it can't be challenged through the Constitution. The conservative groups previously filed suit against the SEC for approving the rules.