Milbank LLP Litigation & Arbitration partners George Canellos and Tawfiq Rangwala, special counsel John Hughes and associate Michael Dauber authored an article titled “Fifth Circuit Declines to Rehear Sweeping Decision That Hamstrings SEC’s Enforcement Program” for the Harvard Law School Forum on Corporate Governance, a leading online resource on corporate governance issues.
After a sweeping defeat in the Fifth Circuit, the Securities and Exchange Commission (SEC) may be headed to the Supreme Court in an effort to salvage important tools in its enforcement arsenal. The SEC had asked the full Fifth Circuit to rehear a split 2-1 decision issued in May in Jarkesy v. SEC, the latest in a series of judicial blows to the SEC’s expansive, decade-long reliance on administrative proceedings to seek monetary penalties from a wide range of entities and individuals. The article explains the significant impact of this decision on SEC charging and settlement decisions.
