Tag: Jarkesy

The SEC Is at the Mercy of the Courts at a Perilous Moment | TIME

In November, the Supreme Court held oral argument inSEC v. Jarkesy. The case deals with whether the agency’s adjudication of fraud claims using its own administrative law judges deprives individuals of their Seventh Amendment right to a jury trial. The justices were all somewhat aligned in skepticism against the SEC’s in-house enforcement practice, with Chief Justice John Roberts coming close…

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Supreme Court Oral Argument in Jarkesy Laser-Focused on Seventh Amendment Trial Right in Agency Civil Penalty Enforcement Actions | Vinson & Elkins LLP

At the outset, caution should always be taken in trying to discern the outcome of cases from oral arguments. That being said, during oral argument, the focus, save a few passing remarks on the ALJ removal issues, was on the Seventh Amendment jury trial right. *** The Justices’ focus on the Seventh Amendment, and near-total silence on the non-delegation and…

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Conservative Supreme Court justices seem open to an attack on the Securities and Exchange Commission

In the Jarkesy case, the Democratic administration is relying on a 50-year-old decision in which the court ruled that in-house proceedings did not violate the Constitution’s right to a jury trial in civil lawsuits. But Chief Justice John Roberts, signaling his concerns with the power of federal regulators, noted that “the impact of governmental agencies on daily life today is…

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The SEC Might Lose Its Courts – Bloomberg

But if Jarkesy wins a total victory on the nondelegation argument, that’s different. That could mean that all of the SEC’s rulemaking (and every other regulatory agency’s rulemaking) is suspect, that every policy decision that the SEC makes is unconstitutional. Much of US securities law would need to be thrown out, or perhaps rewritten by Congress if they ever got…

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Elon Musk, Mark Cuban Back Supreme Court Challenge to SEC | National Law Journal

In a new amicus brief to the Supreme Court, Musk, Dallas Mavericks owner Mark Cuban and others who have wrestled with the securities regulator over the years have come to the aid of a hedge fund manager challenging SEC administrative proceedings in a case before the justices. “Each of the individual amici is a sophisticated businessperson and investor who has publicly litigated against…

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SEC Defends Administrative Judges in Initial Supreme Court Brief

Administrative law judges should be able to adjudicate enforcement proceedings in which the government seeks civil penalties for securities violations, the Securities and Exchange Commission said in its opening brief before the US Supreme Court. The Fifth Circuit’s ruling against the use of ALJs rests on a misunderstanding of legislative power, and Congress didn’t violate the constitution by allowing the…

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