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How Will the Supreme Court’s Decision Impact SEC Proceedings?

May 2, 2023

Securities Enforcement & Litigation partner Christian Schultz recently was quoted in the Pensions & Investments article, “Supreme Court decision could see SEC facing logjams in enforcement cases,” and the Law360 article, “Securities Experts React To The High Court's SEC Decision,” discussing the recent U.S. Supreme Court ruling that lawsuits challenging the constitutionality of the SEC's in-house proceedings can be pursued in federal court without traditional appeal processes.

In the Law360 article, Schultz noted that since the previous administrative process could be viewed as contrary to a defendant's due process and other constitutional rights, the Supreme Court's unanimous decision wasn't necessarily surprising. In the Pensions & Investments story, Schultz warned that this decision will cause headaches for the agency as defendants can now raise constitutional challenges in federal court at the outset of an administrative proceeding, jamming up any matters the SEC might be required to pursue before its in-house administrative law judges.

»Read the full Pensions & Investments article.
»Read the full Law360 article (subscription required).