US Supreme Court rules SEC cannot use administrative proceedings for civil penalties in securities law violations, citing Seventh Amendment.

The US Supreme Court has ruled that the Securities and Exchange Commission (SEC) cannot use its internal administrative proceedings to seek civil monetary penalties against those accused of securities law violations. The decision in SEC v. Jarkesy, a 6-3 ruling, found that the Seventh Amendment's preservation of the right to trial by jury prohibits the SEC from using its administrative process. This ruling could have wide-ranging consequences, as it may lead to an increase in SEC settlement offers and a greater role for state regulators in cases previously led by the federal regulator.

July 01, 2024
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