A new lawsuit challenges the Securities and Exchange Commission’s accredited investor rule as arbitrary and capricious under the Administrative Procedure Act because it “uses wealth as a proxy for sophistication without sufficient justification.”
The lawsuit was filed in the U.S. District Court for the Northern District of Texas by The Investor Choice Advocates Network (ICAN), a nonprofit public interest law firm headed by Nicolas Morgan, on behalf of Emily Kapszukiewicz, who is CEO of the health care startup Owl Therapy and has a master’s degree in applied economics.
Kapszukiewicz has a net worth of $850,000, an annual income of approximately $195,000, and is not an “accredited investor” according to SEC regulations, the lawsuit states.
