The law ordered companies in the state to have at least one board member from an underrepresented group.
Enacted in 2020, the law required publicly traded companies in the state to place at least one racially, ethnically, or otherwise diverse director on their board.
It specified those who identified as “Black, African-American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian or Alaska Native, or gay, lesbian, bisexual or transgender” as meeting the diversity requirement.
Judge Terry Green of the Superior Court of California granted a summary judgement in favor of a lawsuit backed by Judicial Watch. The conservative foundation said the law violated the equal protection clause of the state’s constitution.
The law was the first attempt at a legislated diversity quota in the US. A similar measure enacted in 2018 that mandates at least female director on all public companies’ boards also faces legal challenges.