DEST: NOJPTPM

Teh⁣ U.S.Court of Appeals for the District of Columbia Circuit has⁣ upheld‌ a lower‌ court’s decision ‌denying a⁣ bid to dismiss a lawsuit alleging federal Reserve Board of Governors member Lisa Cook did not ⁢properly disclose potential conflicts of interest related to her prior‌ work.‍ The ruling, issued Friday, allows the⁣ case ​brought by the conservative advocacy group Judicial‌ Watch to proceed.

The⁤ lawsuit centers on Cook’s involvement with the macarthur Fellows Program, ⁣where she served as a selection committee member while simultaneously working at the Federal Reserve.‌ Judicial Watch alleges Cook⁤ violated ethics rules by participating in decisions impacting ⁤organizations also considered by the MacArthur Foundation. The court’s decision affirms that the group presented ⁤sufficient​ evidence to warrant further examination of whether Cook’s actions constituted a conflict of​ interest,rejecting arguments that⁤ the ⁣claims‌ were speculative or lacked⁤ standing.

U.S. District Judge Christopher​ Cooper ⁤initially ⁢denied the dismissal request in November 2023,finding that ​Judicial Watch adequately alleged a violation‌ of the Ethics‌ in Government Act. The appeals court‌ affirmed Cooper’s ruling, stating the group’s claims ⁤were ‍”plausible” and⁣ deserved to be litigated.

“The district court correctly held⁢ that Judicial Watch ⁤alleged facts sufficient to establish⁢ a reasonable probability that Cook’s participation⁢ in the MacArthur Fellows Program⁢ created a conflict of interest,” the appeals ⁢court wrote in its opinion.

The case now returns ​to the district court for further proceedings, potentially including finding and a trial. The outcome could led⁤ to further scrutiny of financial disclosure practices among Federal Reserve​ officials and potentially impact future appointments. Lisa Cook, appointed to⁣ the Federal Reserve Board in may ​2022, is the first Black woman to serve as a governor. She has previously defended her disclosures, asserting she followed all applicable ethics rules.

Daniel Wiessner‍ of Thomson Reuters reports ​on labor and ⁤employment and immigration law, including litigation and policy⁢ making. He‌ can be reached at daniel.wiessner@thomsonreuters.com.