New RulingThe Supreme Court stripped the SEC of its ability to use in-house tribunals when seeking civil penalties against individuals accused of securities fraud. Litigated cases, except for those rare cases where the relief sought is not available in federal court, are generally brought by the SEC in federal court. He explained that the antifraud provisions the SEC sought to enforce here replicate common law fraud, and noted common law fraud claims are traditionally heard by juries. (go back)4 The SEC’s success rate before ALJ’s has previously reached 90%, compared to 69% in federal court. (go back)5 Jessica Corso, Justices Limit SEC’s Use of In-House Courts, Law 360 (Jun.

Source: Wall Street Journal July 21, 2024 01:34 UTC