News & Analysis as of September 18, 2024

Securities Litigation

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The United States Supreme Court is the highest court of the United States and is charged with interpreting federal law, including the United States Constitution. The Court's docket is largely discretionary with only a limited number of cases granted review each term. The Court is comprised of one chief justice and eight associate justices, who are nominated by the President and confirmed by the Senate to hold lifetime positions. less -

Second Circuit Dismisses Rule 10b-5 Claims Based On Pure Omissions Theory Following Remand From The United States Supreme Court

A&O Shearman on 9/18/2024

On August 19, 2024, the United States Court of Appeals for the Second Circuit dismissed, on remand from the United States Supreme Court, putative class action claims brought under Section 10(b) of the Securities Exchange Act...more

FINRA Faces Post- Jarkesy Challenge to its Enforcement Program

A&O Shearman on 7/23/2024

The Financial Industry Regulatory Authority (“FINRA”) is now facing a second litigation challenging the constitutionality of its use of disciplinary tribunals to impose sanctions on FINRA members. A broker filed a complaint...more

Supreme Court Significantly Limits the SEC’s Enforcement Power by Prohibiting Administrative Proceedings for Securities Fraud

Foley Hoag LLP - White Collar Law &... on 7/17/2024

On June 27, 2024, the U.S. Supreme Court issued its decision in Securities and Exchange Commission v. Jarkesy. In a 6-3 decision, the Court ruled that securities fraud claims seeking civil penalties must be decided by a jury...more

The Jury Is Out No More: Supreme Court Curbs SEC’s In-House Authority, with Implications for Other Agencies

Alston & Bird on 7/17/2024

The U.S. Supreme Court’s Jarkesy decision dealt a blow to the Securities and Exchange Commission’s (SEC) in-house adjudication system. Our team analyzes the decision and its potential impact on other federal agencies....more

SEC v. Jarkesy: Supreme Court Delivers Significant Blow to SEC Intra-Agency Enforcement

Davis Wright Tremaine LLP on 7/9/2024

SCOTUS limits agency use of ALJs in civil penalty proceedings - On June 27, 2024, in a 6-3 decision, the Supreme Court held in SEC v. Jarkesy that the Securities and Exchange Commission ("SEC" or the "Commission") could...more

Supreme Court Holding That SEC Actions Seeking Civil Penalties for Securities Fraud Must Be Heard by a Jury Calls Into Question...

Skadden, Arps, Slate, Meagher & Flom LLP on 7/9/2024

In Securities and Exchange Commission v. Jarkesy, the U.S. Supreme Court held that “the Seventh Amendment entitles a defendant to a jury trial when the [Securities and Exchange Commission] seeks civil penalties against him...more

Supreme Court Limits SEC’s Enforcement Power to Penalize Fraud

Sheppard Mullin Richter & Hampton LLP on 7/1/2024

In Securities and Exchange Commission v. Jarkesy, No. 22-859, 2024 WL 3187811 (U.S. June 27, 2024), the United Stated Supreme Court (Roberts, C.J.) held that when the Securities and Exchange Commission (“SEC”) seeks civil...more

Supreme Court Holds That SEC In-House Courts Cannot Adjudicate Enforcement Actions Seeking Civil Penalties For Securities Fraud...

Mayer Brown Free Writings + Perspectives on 6/28/2024

SEC v. Jarkesy, No. 22-859 - Introduction: In a decision with significant, wide-ranging consequences for federal agency enforcement authority, the Supreme Court today held that the Seventh Amendment bars the Securities and...more

Does Jarkesy Negate Administrative Penalties Under The California Corporate Securities Law?

Allen Matkins on 6/28/2024

Yesterday, the United States Supreme Court held that when the Securities and Exchange Commission seeks civil penalties against a defendant for securities fraud, the Seventh Amendment to the U.S. Constitution entitles the...more

Supreme Court Grants Certiorari To Determine Scope of Required Corporate Risk Disclosures

Kramer Levin Naftalis & Frankel LLP on 6/26/2024

On June 10, 2024, the Supreme Court granted certiorari in Facebook, Inc. v. Amalgamated Bank to review a decision by the Ninth Circuit Court of Appeals holding that Facebook could be held liable under Section 10(b) and Rule...more

“Half-Truths,” Not “Pure Omissions”: Supreme Court Limits Section 10(b) Claims Based on Item 303 Nondisclosure to Omissions That...

Cadwalader, Wickersham & Taft LLP on 6/3/2024

On April 12, 2024, a unanimous U.S. Supreme Court issued an opinion in Macquarie Infrastructure Corp. v. Moab Partners, L.P., vacating a Second Circuit judgment that had reinstated claims under Section 10(b) of the Securities...more

Supreme Court: Pure Omissions Cannot Support Rule 10b-5(b) Liability

McDermott Will & Emery on 5/23/2024

On April 12, 2024, the Supreme Court of the United States unanimously held in Macquarie Infrastructure Corp. v. Moab Partners, L.P. that pure omissions are not actionable under Rule 10b-5(b), promulgated by the US Securities...more

Inside the Courts – An Update From Skadden Securities Litigators - May 2024

Skadden, Arps, Slate, Meagher & Flom LLP on 5/23/2024

Spotlight - Macquarie Ruling Raises the Bar for Securities Fraud Claims - Key Points - - On April 12, 2024, the U.S. Supreme Court unanimously reversed and vacated the Second Circuit’s decision in Macquarie...more

Supreme Court Narrows Securities Fraud Exposure

Seyfarth Shaw LLP on 4/25/2024

The Supreme Court recently took away an often-used weapon by shareholder plaintiffs in securities fraud cases, ruling that “pure omissions” from periodic SEC filings (absent any other duty to disclose) are not actionable...more

Supreme Court Holds “Pure Omissions” Are Not Actionable Under Rule 10b-5(b)

Sheppard Mullin Richter & Hampton LLP on 4/23/2024

In Macquarie Infrastructure Corp. v. Moab Partners, No. 22-1165, 2024 WL 1588706 (U.S. Apr. 12, 2024) (“MIC”), the United States Supreme Court (Sotomayor, J.) held unanimously that “pure omissions” in a Securities and...more

Client Alert: Supreme Court Clarifies that Pure Omissions Under Item 303 of Reg. S-K Are Not Actionable Under Rule 10b–5(b)

Jenner & Block on 4/17/2024

On April 12, 2024, in Macquarie Infrastructure Corp. v. Moab Partners, L.P., the US Supreme Court held that a company’s mere failure to disclose information required by management’s discussion and analysis (Item 303 of SEC...more

Supreme Court Unanimously Holds Item 303 Violation, Standing Alone, Cannot Support A “Pure Omission” Claim Under Section 10(b) Of...

A&O Shearman on 4/16/2024

On April 12, 2024, the United States Supreme Court unanimously reversed a decision of the United States Court of Appeals for the Second Circuit which held that Section 10(b) of the Securities Exchange Act of 1934 permitted a...more

Inside the Courts – An Update From Skadden Securities Litigators - February 2024

Skadden, Arps, Slate, Meagher & Flom LLP on 3/5/2024

Securities Class Actions Show No Signs of Slowing in 2024 - Key Points - While the volume of securities class actions filings has remained consistently elevated over the past several years, the composition of the class...more

SEC Enforcement of Cryptocurrency Reaches a New High

Cornerstone Research on 1/26/2024

More than 50% increase in SEC cryptocurrency-related enforcement actions in 2023 over 2022. The Securities and Exchange Commission (SEC) continues to view cryptocurrency-related enforcement as a top priority, bringing 46...more

2024 Insights: ESG

Skadden, Arps, Slate, Meagher & Flom LLP on 12/15/2023

The Supreme Court’s Affirmative Action Opinion Continues To Spawn Challenges to DEI Programs - Businesses can expect continued challenges to DEI programs, as emboldened opponents to these programs seek to expand the reach...more

The Supreme Court’s Affirmative Action Opinion Continues To Spawn Challenges to DEI Programs

Skadden, Arps, Slate, Meagher & Flom LLP on 12/13/2023

Key Points - - In the wake of the Supreme Court’s decision in Students for Fair Admissions, challenges to DEI initiatives have focused on programs that facially appear to provide a zero-sum advantage based on protected...more

Second Circuit Reins in SEC Disgorgement Powers

Sheppard Mullin Richter & Hampton LLP on 11/6/2023

In Securities & Exchange Commission v. Govil, No. 22-1658, 2023 WL 7137291 (2d Cir. Oct. 31, 2023), the United States Court of Appeals for the Second Circuit dealt a setback to the enforcement agenda of the Securities and...more

Justice Louis Powell and the Evolution of Modern Securities Law: A Review of a History of Securities Law in the Supreme Court

Akin Gump Strauss Hauer & Feld LLP on 10/12/2023

The words “Supreme Court” tend to stir up current social issues and intermingled constitutional law issues. Public news attention tends to focus on the “headlining grabbing” issues the Court considers, while less glamorous...more

Supreme Court Plays Its Cards on Constitutionality of SEC In-House Court Actions

Carlton Fields on 10/3/2023

The U.S. Supreme Court’s June 2023 decision to grant certiorari in SEC v. Jarkesy called into question the SEC’s ability to pursue penalties and other legal remedies before the SEC’s in-house administrative law judges. If...more

The SEC (and Other Agencies) Could Lose a Powerful Enforcement Tool

Brownstein Hyatt Farber Schreck on 7/13/2023

The U.S. Supreme Court will decide whether the use of administrative law judges passes constitutional muster If the U.S. Supreme Court upholds a recent Fifth Circuit ruling, it could end the use of administrative proceedings...more

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Supreme Court of the United States › Securities and Exchange Commission (SEC) › Securities Litigation

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