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Seventh Amendment Securities Fraud

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

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

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

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

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

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

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

Cooley LLP

Public Companies Update – July One-Minute Reads

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SCOTUS rules against SEC’s use of administrative law judges - In a 6 – 3 opinion issued June 27 in SEC v. Jarkesy, the US Supreme Court rejected the Securities and Exchange Commission’s use of in-house tribunals to...more

Jenner & Block

Client Alert: Latest Supreme Court Term Presents New Challenges for SEC

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The Supreme Court’s most recent term has forced the SEC to face new realities regarding its powers. As has been widely publicized, the Supreme Court’s overruling of Chevron in Loper Bright Enterprises v. Raimondo highlighted...more

SEC Compliance Consultants, Inc. (SEC³)

Regulatory Roundup for July 2024

SEC Loses in ALJ Case, DOL’s Latest Fiduciary Rule Put on Hold, and SEC Reconsiders AI and Custody Rule Proposals - Welcome to our July Regulatory Roundup, where we provide a quick look at the latest regulatory developments....more

Stoel Rives - Environmental Law Blog

SEC v. Jarkesy: In-House Adjudicators are Out and the Jury is In

Why do environmental professionals need to know about a recent securities case? Read on for details. In response to the Wall Street Crash of 1929, Congress passed the Securities Act of 1933, the Securities Exchange Act of...more

Cooley LLP

US Supreme Court’s October 2023 Term Administrative Law Trilogy – Holdings, Analyses and Implications of Jarkesy, Loper Bright and...

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The October 2023 term of the US Supreme Court (SCOTUS) saw a trilogy of decisions that challenge long-settled assumptions about the authority of federal agencies and upend long-standing doctrines of administrative law: SEC v....more

Perkins Coie

FERC Enforcement Authority After SCOTUS Jarkesy Decision

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On June 27, 2024, in SEC v. Jarkesy, the Supreme Court of the United States held that a respondent to a U.S. Securities and Exchange Commission (SEC) securities fraud action seeking civil monetary penalties is entitled to a...more

Husch Blackwell LLP

The Justice Insiders Podcast: Jarkesy’s Implications for the Administrative State

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Host Gregg N. Sofer welcomes back to the podcast Richard Epstein, Laurence A. Tisch Professor of Law at New York University Law School, and Steve Renau, Husch Blackwell’s Head of Thought Leadership, to discuss the U.S....more

A&O Shearman

FINRA Faces Post- Jarkesy Challenge to its Enforcement Program

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The Financial Industry Regulatory Authority (“FINRA”) is now facing a second litigation challenging the constitutionality of its use of disciplinary tribunals to impose sanctions on FINRA members. A broker filed a complaint...more

Steptoe & Johnson PLLC

Two U.S. Supreme Court Decisions Will Affect the Securities Industry

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The Supreme Court of the United States (SCOTUS) recently issued two opinions that are likely to have a longer-term effect on the way securities industry matters are handled. Juries, not the Securities Exchange Commission...more

Lowenstein Sandler LLP

Supreme Court: SEC Cannot Force Defendants in Civil-Penalty, Antifraud Enforcement Actions To Litigate Before the Commission...

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The U.S. Supreme Court recently decided SEC v. Jarkesy. That decision held that individuals subject to U.S. Securities and Exchange Commission (SEC or Commission) enforcement actions in which the SEC seeks civil penalties for...more

Kramer Levin Naftalis & Frankel LLP

Supreme Court Limits SEC’s In-House Adjudicative Powers

On June 27, 2024, in Securities and Exchange Commission v. Jarkesy, the Supreme Court held that the Securities and Exchange Commission’s (SEC or the Commission) administrative process for adjudicating fraud-based enforcement...more

Balch & Bingham LLP

Ripple Effects Of SEC Adjudication Ruling May Be Momentous

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Suppose that your nemesis has a legal beef with you, and you learn that the law allows him to appoint one of his employees to judge the case. Shocked? You should be. Yet federal agency adjudication works the same way. How...more

Foley Hoag LLP - White Collar Law &...

Supreme Court Significantly Limits the SEC’s Enforcement Power by Prohibiting Administrative Proceedings for Securities Fraud

On June 27, 2024, the U.S. Supreme Court issued its decision in Securities and Exchange Commission v. Jarkesy. In a 6-3 decision, the Court ruled that securities fraud claims seeking civil penalties must be decided by a jury...more

Alston & Bird

The Jury Is Out No More: Supreme Court Curbs SEC’s In-House Authority, with Implications for Other Agencies

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The U.S. Supreme Court’s Jarkesy decision dealt a blow to the Securities and Exchange Commission’s (SEC) in-house adjudication system. Our team analyzes the decision and its potential impact on other federal agencies....more

Faegre Drinker Biddle & Reath LLP

Jarkesy Limits Power of the SEC to Rely on In-House Adjudicators When Pursuing Penalties for Fraud

The U.S. Supreme Court limited the power of the Securities and Exchange Commission (SEC) to enforce civil penalties via in-house tribunals in its decision in SEC v. Jarkesy, released on June 27, 2024. In its decision,...more

Goodwin

U.S. Supreme Court Significantly Curtails SEC Enforcement Forum Discretion

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On June 27, 2024, the United States Supreme Court issued a much-anticipated decision in Securities and Exchange Commission v. Jarkesy, holding that parties subject to an enforcement action brought by the U.S. Securities and...more

Patterson Belknap Webb & Tyler LLP

Supreme Court Decision in SEC v. Jarkesy Limits the SEC’s Ability to Seek Civil Penalties

On June 26, 2024, the Supreme Court issued a decision in SEC v. Jarkesy, holding that “[w]hen the SEC seeks civil penalties against a defendant for securities fraud, the Seventh Amendment entitles the defendant to a jury...more

Paul Hastings LLP

The Consequential Impact of the Supreme Court’s Monumental Ruling in SEC v. Jarkesy

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On June 27, 2024, the Supreme Court of the United States issued its decision in SEC v. Jarkesy, holding that the Securities and Exchange Commission (“SEC”) must prosecute securities fraud before a federal court whenever it...more

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