Supreme Court Deals Another Blow to SEC by Allowing Collateral Attacks on Administrative Proceedings to Proceed in Federal Court | Arnold & Porter

Although the Supreme Court in Cochran decided merely a procedural question of federal court jurisdiction, it may open the floodgates to collateral attacks by respondents to pending administrative proceedings and mire the SEC in litigation. As such, Cochran represents another lost battle in the SEC’s ongoing war to preserve its administrative proceedings against constitutional challenges brought by respondents to enforcement actions. Moreover, as discussed below, the Supreme Court has now been presented with another opportunity to resolve substantive questions about the constitutionality of SEC administrative proceedings.

Source: Supreme Court Deals Another Blow to SEC by Allowing Collateral Attacks on Administrative Proceedings to Proceed in Federal Court | Advisories | Arnold & Porter