News & Analysis as of

Seventh Amendment

Hogan Lovells

Constitutional challenges facing FTC may find receptive audience in nominee to lead the Commission

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The Federal Trade Commission (FTC) is currently facing a growing number of challenges related to the constitutionality of the agency’s structure and operation. One of these challenges was raised by current FTC...more

Miller Nash LLP

SEC v. Jarkesy: Seventh Amendment Jury Trials, Seeking Civil Penalties, and Agency Administrative Actions

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The U.S. Supreme Court’s decision in Securities and Exchange Commission v. Jarkesy, 144 S. Ct. 2117 (2024) held that when the SEC seeks civil penalties to punish and deter wrongful conduct, the Seventh Amendment entitles the...more

Epstein Becker & Green

The Loper and Jarksey Era: Agency Power to Award Civil Penalties in SEC and FINRA Under Increased Scrutiny

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Since the U.S. Supreme Court’s landmark Loper decision, which overturned the longstanding precedent of the Chevron doctrine for agency deference, it was anticipated that lower courts, as well as the Supreme Court, would begin...more

King & Spalding

SEC Enforcement Fiscal Year 2024 Results – A Look Behind the Numbers

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SEC Chair Gary Gensler announced November 21 that he will leave his post January 20, 2025. The next day, the SEC announced its enforcement results for fiscal year 2024, which ended September 30. This was the latest release of...more

Proskauer - Labor Relations Update

Amazon, SpaceX Must Navigate Procedural Roadblocks in Constitutional Challenge of NLRB

On November 18, 2024, the U.S. Court of Appeals for the Fifth Circuit heard oral argument on cases involving Amazon.com Inc. and SpaceX, respectively, challenging the constitutionality of the National Labor Relations Board...more

Verrill

Administrative Penalties Under Scrutiny: Jarkesy’s Potential Impact on EPA and Massachusetts Enforcement

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The United States Environmental Protection Agency (“EPA”) often uses civil penalties to punish environmental violators. The EPA can either pursue a penalty through its internal administrative process or have the Justice...more

Benesch

Texas Decision Calls Into Question the Use of Administrative Law Judges

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On October 30, 2024, a Texas federal judge issued a preliminary injunction blocking the U.S. Department of Labor (“DOL”) from using its in-house administrative law judges to oversee administrative proceedings against a...more

Ballard Spahr LLP

Citing Jarkesy, Asbury Automotive Group files suit challenging FTC administrative proceeding

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One of the country’s largest automotive retailers filed suit against the Federal Trade Commission (“FTC”) on October 4, arguing that the Supreme Court’s recent landmark decision in Securities and Exchange Commission v....more

Clark Hill PLC

Administrative Law Report - October 2024, Vol. 1

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Welcome to your monthly rundown of all things administrative law, where we highlight all the happenings you may have missed. Environmental/Energy: D.C. Circuit Defers to EPA’s Factual Determinations: On Aug. 13, the US Court...more

Seyfarth Shaw LLP

Dealer Group Sues FTC to Enjoin Administrative Proceeding Over Alleged Junk Fees and Discriminatory Lending Practices - Seyfarth's...

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On October 4, 2024, Asbury Automotive Group, a Fortune 500 company and one of the largest automobile dealer groups in the United States, sued the Federal Trade Commission (FTC) to enjoin as unconstitutional the FTC’s...more

Cooley LLP

Last term SCOTUS gave the administrative state quite a thumping. Does it still have the urge to curb?

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If you thought that SCOTUS’ decision in Loper Bright last term tolling the bell for the 70-year old Chevron doctrine was the end of SCOTUS’ drubbing of the administrative state, look again—you may well be sorely mistaken. You...more

Williams Mullen

Environmental Notes - October 2024

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EPA Proposes Removing Affirmative Defense Provisions from Eighteen Clean Air Act Emission Standards - In a proposed rule published on June 24, 2024, EPA has proposed to remove eighteen affirmative defense provisions for...more

Skadden, Arps, Slate, Meagher & Flom LLP

Supreme Court Decisions Curtail Regulatory Agencies’ Powers, Making It Easier To Challenge Rules

The U.S. Supreme Court’s 2023 term is another chapter in the Roberts Court’s trend of shifting power away from administrative agencies and into the hands of courts....more

A&O Shearman

FINRA Beats First Post-Jarkesy Challenge

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On September 4, 2024, Judge John Murphy of the U.S. District Court for the Eastern District of Pennsylvania dismissed on jurisdictional grounds the first post-Jarkesy constitutional challenge to FINRA’s disciplinary...more

Cranfill Sumner LLP

After Jarkesy, What Is Next for In-House Enforcement Proceedings?

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Much virtual ink has been spilled in the weeks and months since the Supreme Court issued its opinion in Securities and Exchange Commission v. Jarkesy—much attesting to that the decision was the death knell for in-house...more

Orrick, Herrington & Sutcliffe LLP

District Court dismisses FINRA challenge for lack of subject matter jurisdiction

On September 4, the U.S. District Court for the Eastern District of Pennsylvania dismissed a plaintiff’s attempt to enjoin FINRA from proceeding with a disciplinary hearing against the plaintiff. The plaintiff’s disciplinary...more

Jenner & Block

Client Alert: Under Jarkesy, FERC’s Penalty Assessment Schemes Are Unconstitutional

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In SEC v. Jarkesy, the Supreme Court considered whether the Seventh Amendment permits the SEC “to compel respondents to defend themselves before the agency rather than before a jury in federal court.” The Court held that the...more

Frantz Ward LLP

First Attempt to Use the Supreme Court's Jarkesy Decision to Limit the Ability of FINRA to Assess Monetary Sanctions in...

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In our post at the end of June of this year we analyzed the Supreme Court’s decision in SEC v Jarkesy, which held that the right to trial by jury in an Article III Court contained in the Seventh Amendment to the Constitution...more

Jones Day

SEC Dismisses In-House Proceedings Against Accountants Following Jarkesy

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In the wake of the U.S. Supreme Court's recent Jarkesy decision, the U.S. Securities and Exchange Commission ("SEC") dismissed two contested Rule 102(e) proceedings against accountants, suggesting that the agency believes...more

Ballard Spahr LLP

Defendant Challenges FDIC Enforcement Proceeding, Citing Jarkesy

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In one of the first tests of the implications of the Jarkesy decision for other federal regulatory agencies, an individual accused by the FDIC of participating in fraudulent loan activity is asking a federal judge to dismiss...more

Orrick, Herrington & Sutcliffe LLP

Supreme Court Curtails Use of Administrative Courts in SEC Enforcement Proceedings: What it Means for Other Agencies and What...

The U.S. Supreme Court has ruled that defendants in securities fraud cases brought by the SEC are entitled by the Seventh Amendment to have the SEC’s claims for civil money penalties decided by a jury and not in an...more

Cadwalader, Wickersham & Taft LLP

Loper Bright, Jarkesy, and Implications for the SEC

“Chevron is overruled,” Chief Justice Roberts wrote in Loper Bright Enterprises v. Raimondo, because “[t]he deference that Chevron requires of courts reviewing agency action cannot be squared with the [Administrative...more

Morgan Lewis

Securities Enforcement Roundup – July 2024

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In this issue of our monthly Securities Enforcement Roundup, we highlight top securities enforcement developments and cases from last month. In July 2024: A district court dismissed several of the SEC’s claims against...more

Eversheds Sutherland (US) LLP

Dual registrant regulatory roundup - August 2024

Welcome to the Regulatory Roundup. Each month, Eversheds Sutherland Investment Services attorneys review significant regulatory developments (including notable rulemakings and guidance from securities regulators) from the...more

Clark Hill PLC

[Webinar] Post Chevron Landscape for Business Leaders - August 13th, 12:00 pm - 1:00 pm EDT

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The recent United States Supreme Court decisions in Loper Bright Enterprises, overruling Chevron, as well as Jarkesy and Corner Post will have a significant impact on how regulated industries will conduct business going...more

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