The Supreme Court has ruled that the Securities and Exchange Commission (SEC) cannot use in-house trials for civil fraud complaints, granting defendants the right to a jury trial in federal court. This verdict, reached with a 6-3 majority, significantly affects how regulatory agencies operate.
The Court’s decision challenges the long-standing practice where the SEC relied on administrative proceedings to resolve civil fraud complaints. Previously, the agency collected over $5 billion in civil penalties during the 2023 fiscal year, though it needs to be clarified how much of this was from in-house trials. With the recent ruling, the SEC has reduced the number of cases it handles this way and is awaiting the Court’s decision.
This is a developing story
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Breaking: Supreme Court Limits SEC’s Use of In-House Trials …
