In a 6-3 decision in SEC v. Jarkesy, the Supreme Court of the United States ruled that respondents to a U.S. Securities and Exchange Commission in-house enforcement action alleging securities fraud and seeking civil penalties have a right to a federal jury trial under the Seventh Amendment. The decision by Chief Justice John Roberts, which seemingly applies to federal agencies generally, represents yet another curtailment of the SEC’s authority.

On the heels of the 2018 Lucia decision and the 2023 Axon decision, the Court continues to chip away at the SEC’s enforcement authority. The decision also narrows the “public rights” exception that permits federal agencies to conduct in-house enforcement actions without a jury trial in certain circumstances.

Read the full Update here.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Rachel Mechanic Rachel Mechanic

Rachel maintains a broad litigation practice representing and advising corporate clients, board committees, senior executives, and other individuals in securities enforcement proceedings, complex commercial litigations, and white-collar criminal matters. Rachel also represents law firms in professional liability disputes. Since 2019, Rachel has been…

Rachel maintains a broad litigation practice representing and advising corporate clients, board committees, senior executives, and other individuals in securities enforcement proceedings, complex commercial litigations, and white-collar criminal matters. Rachel also represents law firms in professional liability disputes. Since 2019, Rachel has been named each year by Super Lawyers as a Rising Star in Civil Litigation and White Collar Criminal Defense, a distinction reserved for the top 2.5% of New York lawyers under 40.

Rachel previously served as an assistant general counsel at J.P. Morgan Chase. At J.P. Morgan, Rachel was a member of the Government Investigations and Regulatory Enforcement group, which represents the bank in connection with government and regulatory investigations and enforcement matters across all business units and geographic regions of the firm.

Photo of Daniel Zinman Daniel Zinman

Daniel C. Zinman has more than 25 years of experience representing institutions and individuals in securities enforcement proceedings, white collar criminal matters, complex commercial litigations, and internal investigations.

Photo of Michael Huston Michael Huston

Michael Huston is the firmwide co-chair of Perkins Coie’s Appeals, Issues & Strategy practice. He has been ranked as one of the nation’s leading appellate lawyers.

Photo of Shari Brandt Shari Brandt

Shari Brandt is a top-rated white-collar lawyer handling both U.S. and international matters.

Photo of Arthur Greenspan Arthur Greenspan

Arthur Greenspan’s 30-year career has included the successful representation of financial firms and other companies, board committees, and senior executives and professionals.

Photo of H. Rowan Gaither H. Rowan Gaither

H. Rowan Gaither IV has been litigating complex civil cases for more than 20 years. His cases often involve cutting-edge legal issues relating to financial benchmarks, securities, derivatives, commodities, and other complex financial products.

Photo of Marc S. Martin Marc S. Martin

Technology, media, and telecom law attorney Marc S. Martin provides regulatory, transactional, and strategic advice to developers, service providers, manufacturers, entrepreneurs, investors, and enterprise customers.