Oct 1, 2008 -- Appeals Court Denies Latest Attempt to Scuttle 527 Group Regulations

­­­­­­Today, the Court of Appeals for the Fourth Circuit denied a motion filed by The Real Truth About Obama (RTAO) requesting an injunction pending its appeal of a district court decision that denied RTAO preliminary relief in its challenge to several FEC regulations.

In the district court below, RTAO had requested a preliminary injunction enjoining enforcement of certain FEC regulations that govern when 527 groups have to register as federal political committees and abide by applicable federal contribution limits and disclosure requirements. In essence, RTAO sought to invalidate those FEC regulations that might render it a political committee so that it could run ads criticizing Senator Barack Obama in the weeks preceding the presidential election without complying with federal contribution limits and other restrictions that have applied to political committees for more than 30 years. The district court denied this motion, finding that RTAO case was unlikely to succeed on its merits, and RTAO appealed the decision. Seeking to jump-start its appeal, RTAO requested that the Fourth Circuit enjoin these FEC regulations while it appealed the district court's decision, and in addition, that the Fourth Circuit expedite its appeal. The Fourth Circuit denied both of these motions today.

"If the court had granted the motion to enjoin the regulations, the floodgates would have been opened for a torrent of unregulated ads clearly intended to influence the upcoming election" said Campaign Legal Center Associate Legal Counsel Tara Malloy. "Ultimately the case will be decided on the merits but we are hopeful the lower court decision will be affirmed and that the reforms born of the Watergate era scandals will survive."

The Campaign Legal Center, together with Democracy 21, filed an amici brief with the district court, supporting the constitutionality of the FEC's regulations.