News & Analysis as of

Constitutional Challenges Administrative Law Judge (ALJ) Federal Trade Commission (FTC)

Hogan Lovells

Constitutional challenges facing FTC may find receptive audience in nominee to lead the Commission

Hogan Lovells on

The Federal Trade Commission (FTC) is currently facing a growing number of challenges related to the constitutionality of the agency’s structure and operation. One of these challenges was raised by current FTC...more

Bradley Arant Boult Cummings LLP

SpaceX Exploration: Constitutional Challenge to NLRB Structure

Following several complaints filed with the National Labor Relations Board (NLRB), SpaceX has mounted a constitutional challenge against the structure of the NLRB. Specifically, SpaceX contends that NLRB administrative judges...more

Balch & Bingham LLP

In Case You Missed It: Will The U.S. Supreme Court’s Jarkesy Decision Be A Game Changer For Administrative Law?

Balch & Bingham LLP on

In “Case” You Missed It is a new column by Balch & Bingham attorney Tripp DeMoss that briefly summarizes a recently issued decision by higher courts like the U.S. Supreme Court and Alabama Supreme Court in cases of interest...more

Stevens & Lee

Challenging the FTC’s Constitutionality in the Aftermath of Jarkesy

Stevens & Lee on

The Supreme Court on June 27 issued its opinion in Securities and Exchange Commission v. Jarkesy in which it held that when the SEC seeks civil penalties against a defendant for securities fraud, the Seventh Amendment...more

Axinn, Veltrop & Harkrider LLP

In SEC v. Jarkesy, Supreme Court Leaves Open Constitutional Challenges Related to FTC Structure and Process

In a much-watched case concerning the administrative state, on June 27, the Supreme Court decided in SEC v. Jarkesy that defendants facing a fraud suit by the SEC have a Seventh Amendment right to a jury trial in an Article...more

Ballard Spahr LLP

SCOTUS to hear oral argument on Nov. 29 in case involving challenge to use of administrative law judges by federal agencies

Ballard Spahr LLP on

On November 29, 2023, the U.S. Supreme Court will hear oral argument in Jarkesy v. Securities and Exchange Commission, a case in which the respondents are challenging the constitutionality of the SEC’s use of administrative...more

Stevens & Lee

FTC Abandons Axon Challenge Following Supreme Court Loss

Stevens & Lee on

We have previously reported on Axon Enterprise, Inc. v. Federal Trade Commission, 598 U.S. ____, 143 S. Ct. 890 (2023), a case involving the question whether parties seeking to undertake a transaction subject to FTC review...more

Venable LLP

Tracking the Impact of Securities and Exchange Commission v. Jarkesy and Other Constitutional Challenges Against the FTC

Venable LLP on

In recent years, independent agencies have continued to face a number of constitutional and statutory challenges before the Supreme Court. AMG Capital Management struck down the Federal Trade Commission’s authority to obtain...more

Proskauer - Minding Your Business

The Axon Side-Step: Defendants’ New Dance to Avoid Agency Enforcement Actions

The FTC and SEC have their own administrative dispute resolution regime, presided over by their own administrative judges (“ALJs”). Until now, those regimes were virtually immune from attack on a constitutional basis, because...more

A&O Shearman

United States Supreme Court To Hear Appeal On SEC Power To Initiate Administrative Proceedings

A&O Shearman on

On June 30, 2023, the United States Supreme Court agreed to hear an appeal regarding the constitutionality of administrative proceedings in the case of George Jarkesy and Patriot28 LLC v. SEC, which could have important...more

Holland & Knight LLP

U.S. Supreme Court Agrees to Hear Nondelegation Case

Holland & Knight LLP on

The U.S. Supreme Court on June 30, 2023, agreed to hear the case of SEC v. Jarkesy.1 The case is an appeal of a U.S. Court of Appeals for the Fifth Circuit decision that held that the U.S. Securities and Exchange Commission's...more

Troutman Pepper Locke

Administrative Law Judges Face Diminished Authority Under New FTC Rule

Troutman Pepper Locke on

On June 2, the Federal Trade Commission (FTC) announced modifications to its in-house adjudicative proceedings of agency challenges to mergers and acquisitions by reducing the decision-making power held by administrative law...more

Kelley Drye & Warren LLP

Déjà vu: The 5th Circuit Hears Yet Another Challenge to Constitutionality of an Administrative Agency

In the past couple years, the Federal Trade Commission has gone 0 for 2 before the Supreme Court. In AMG, the Court found that Section 13(b) of the FTC Act does not provide the Commission with the authority to obtain...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Supreme Court Ruling Questions Constitutionality of FTC’s and SEC’s Administrative Adjudications Processes - Is OSHA Next?

On April 14, 2023, the Supreme Court of the United States opened the door for new challenges to the federal administrative state. In a unanimous decision in a pair of consolidated cases, Axon Enterprise, Inc. v. Federal Trade...more

A&O Shearman

Harbinger of cases to come: Axon decision sets the stage for future constitutional challenges to administrative proceedings

A&O Shearman on

Key Points - The U.S. Supreme Court held that litigants can bring constitutional challenges in federal district court against the FTC and SEC without fully exhausting administrative proceedings....more

Patterson Belknap Webb & Tyler LLP

Supreme Court Decision in Axon Enterprise, Inc. v. FTC Has Wide Reaching Implications for Administrative Enforcement Proceedings

On April 14, 2023, the Supreme Court issued a consolidated opinion in Axon Enterprise, Inc. v. FTC and SEC v. Cochran.[1] We previously covered the oral argument in these cases here. These cases address whether respondents...more

BakerHostetler

Are Hospital Acquisitions with COPA Authorization Exempt from HSR Pre-Merger Notification?

BakerHostetler on

The Federal Trade Commission (FTC or the Commission) has experienced multiple recent setbacks with respect to its regulatory authority. Now a new dispute raises questions about whether hospital acquisitions with Certificate...more

BakerHostetler

Supreme Court Clears the Way for Constitutional Challenges to SEC, FTC Administrative Forums in Federal District Court

BakerHostetler on

In Axon Enterprise, Inc. v. FTC and SEC v. Cochran, the respondents in administrative agency enforcement actions brought suit in federal district court, challenging the constitutionality of each respective agency’s attempt to...more

Alston & Bird

Supreme Court Securities Law Roundup - The Axon Decision and Oral Argument in Slack v. Pirani

Alston & Bird on

Our Securities Litigation Group analyzes the impact of the Axon and Cochran decisions on the use of administrative law judges (ALJs) and gleans clues about the future of direct listings from the Slack oral argument....more

Harris Beach Murtha PLLC

U.S. Supreme Court Scrutiny of Government Agency Tribunals

A unanimous decision by the U.S. Supreme Court on April 14, 2023, is likely to have far-reaching implications for government agency tribunals. In consolidated cases involving constitutional challenges to two separate...more

Carlton Fields

Axon, Gibson, Jarkesy: Continuing Challenges to SEC’s Administrative Citadel

Carlton Fields on

Earlier this month, the U.S. Supreme Court issued a procedural decision that has the potential to dismantle the Securities and Exchange Commission’s ability to litigate cases administratively. On April 14, 2023, the Supreme...more

Akin Gump Strauss Hauer & Feld LLP

SCOTUS Decision Sets Up Constitutional Challenges to FTC Administrative Proceedings

Key Points - In a unanimous decision, the Supreme Court held in Axon v. FTC that the FTC Act (and the SEC Act) do not prohibit a federal court from hearing challenges to the constitutionality of either Commission’s...more

Perkins Coie

Supreme Court Allows Structural Constitutional Challenges to FTC and SEC Proceedings in Federal District Court

Perkins Coie on

The U.S. Supreme Court ruled in two related cases, Axon Enterprise Inc. v. FTC (No. 21-86) and SEC v. Cochran (No. 21-1239), that federal district courts have jurisdiction to hear structural constitutional challenges to the...more

Fisher Phillips

SCOTUS Delivers a Win for Businesses Challenging Federal Agency Actions: 4 Key Takeaways for Employers

Fisher Phillips on

The Supreme Court recently handed a victory to employers by giving them more tools to challenge federal agencies during administrative proceedings. Employers likely know how daunting it can seem to challenge federal officials...more

Troutman Pepper Locke

Unanimous Supreme Court Decision Allows for Early Challenges to Federal Agency Enforcement Actions

Troutman Pepper Locke on

On April 14, the Supreme Court unanimously held that federal district courts have jurisdiction to review constitutional challenges to the structures of the Federal Trade Commission (FTC) and Securities and Exchange Commission...more

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