Supreme Court Curbs SEC’s In-House Judges in Fraud Cases

 

• 6-3 decision is a blow to commission’s administrative system
• Majority held that damages claims should go before a jury

The US Supreme Court curbed the Securities and Exchange Commission’s ability to press complaints before in-house judges, saying defendants have a constitutional right to make their case to a federal jury when the agency is seeking financial penalties.

The 6-3 decision could reduce the commission’s leverage to extract high-dollar settlements. It deals a blow to an administrative system the SEC once used to adjudicate more than 100 cases a year before scaling back amid legal challenges.

https://www.bloomberg.com/news/articles/2024-06-27/supreme-court-curbs-sec-s-use-of-in-house-judges-in-fraud-cases