Report from Cydney Posner of Cooley on the federal district court hearing on plaintiff's request for a preliminary injunction against enforcement of SB 826, which "requires that public companies (defined as corporations listed on major U.S. stock exchanges) that have principal executive offices located in California, no matter where they are incorporated, include specified minimum numbers of women on their boards of directors."
It sound like the plaintiff's going to lose on that request and probably on the merits, as the judge reportedly stated that:
I think that the plaintiff hasn’t demonstrated enough of a likelihood of success on the merits on his claim that this law is unconstitutional to warrant a preliminary injunction, to stop the law now. It goes to my question obviously loaded and somewhat biased about the balance of equities in the public interest of stopping this law now, particularly when it appears to be working so well and is accomplishing the primary goal of remedying discrimination.
“So in terms of a likelihood of success on the merits, I am leaning towards finding that the defendants are more likely to succeed on the merits, and that the law should be upheld.
As regular readers know, I believe SB 826 is unconstitutional under the penumbra created by the full faith and credit and dormant commerce clauses, which constitutionalize the internal affairs doctrine. That issue is not being litigated in this case, however.