The board said its rejection of Mr Rothschild's proposal was unanimous, and if the motion were passed, the two serving board members that the British financier proposed to retain - Sir Graham Hearne and StevenShapiro - have vowed to resign.
"This is a lawsuit about censoring material that is constitutionally protected and that the government could not for a moment attempt to ban if it were appearing in any other form, written or oral, " said StevenShapiro of the American Civil Liberties Union.