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Jarkesy Supreme Court Ruling Limits SEC's Enforcement Authority
Reprinted from: Harvard Law School Forum on Corporate Governance | July 11, 2024In a 6-3 decision issued on June 27, 2024 in SEC v. Jarkesy, the U.S. Supreme Court curtailed the U.S. Securities and Exchange Commission’s (“SEC”) enforcement authority in recognizing that there is a right to a jury trial in SEC actions alleging securities fraud where civil penalties are sought. Prior to the Jarkesy opinion, the SEC had unfettered discretion to bring securities fraud actions in the forum of its choosing (whether that be in federal court or an SEC administrative proceeding), the choice of which was not required to be disclosed prior to the action being brought. It can no longer forum shop.
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