News & Analysis as of

SEC v Jarkesy Constitutional Challenges

Perkins Coie

Fifth Circuit Rules FCC Enforcement Action Unconstitutional

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Key Takeaways - - The U.S. Court of Appeals for the Fifth Circuit vacated a $57 million fine levied by the Federal Communications Commission (FCC) against AT&T. - The court ruled the FCC's in-house enforcement proceedings...more

Venable LLP

Fifth Circuit Decision Vacating FCC Fine Against AT&T Makes It More Difficult for Federal Agencies to Impose Monetary Penalties...

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The Fifth Circuit on April 17 vacated a $57 million FCC forfeiture against AT&T, ruling the agency violated the company’s Seventh Amendment right to a jury trial under the Supreme Court’s 2024 decision in SEC v. Jarkesy. ...more

Fox Rothschild LLP

Another Civil Penalty Falls under Jarkesy – What’s Next?

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On April 17th, the Fifth Circuit Court of Appeals held that an FCC penalty violates the Seventh Amendment based on the Supreme Court’s landmark ruling in SEC v. Jarkesy. The Seventh Amendment provides for the...more

Troutman Pepper Locke

White House Issues Memorandum Directing Federal Agencies to Repeal Regulations Deemed to be Unlawful Pursuant to Recent U.S....

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On April 9, the White House issued a memorandum directing federal executive departments and agencies to repeal regulations deemed unlawful pursuant to certain U.S. Supreme Court decisions. This directive aims to address...more

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

New Challenges Loom for OSHA and OSHRC Amid Quorum Issues, Potential ALJ Removals, and Recent Supreme Court Jurisprudence

“The Times They Are a-Changin’” isn’t just a Bob Dylan song title—it is also a fairly accurate description of what has been happening in the arena of the Occupational Safety and Health Administration (OSHA) and the...more

Orrick, Herrington & Sutcliffe LLP

DOJ determines administrative law judges are unconstitutional

On February 20, Acting Solicitor General Sarah M. Harris wrote to Sen. Charles Grassley (R-IA), President pro tempore of the Senate, and Rep. Mike Johnson (R-LA), Speaker of the House, to disclose that, pursuant to 28 U.S.C....more

Carlton Fields

DOJ Withdraws Defense of SEC ALJs' Constitutionality as Trump Issues Executive Order on Agency Accountability

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On February 18, 2025, President Trump issued executive order 14215, titled “Ensuring Accountability for All Agencies,” with the stated purpose of making federal agencies, including independent regulatory ones like the...more

Carlton Fields

Jarkesy May Reshape SEC Enforcement Against Professionals

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For decades, the SEC has relied on its in-house administrative proceedings to enforce alleged violations under the federal securities laws, including under its own rules of practice....more

Bradley Arant Boult Cummings LLP

Kansas Bank's Suit Could Upend FDIC Enforcement Authority

On Nov. 19, 2024, the Federal Deposit Insurance Corp. issued a notice of assessment finding that between December 2018 and August 2020, CBW Bank — a single-branch bank in Weir, Kansas — failed to maintain an adequate...more

A&O Shearman

Energy Company Settles Long-Running Dispute With FERC After Jarkesy Decision Undercuts FERC’s Enforcement Authority

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On January 8, 2025, the Federal Energy Regulatory Commission approved a stipulation and consent agreement between its Office of Enforcement and an energy company (the “Company”) to resolve a dispute pending since 2016...more

Mintz - Health Care Viewpoints

EnforceMintz —Could the Supreme Court’s Decision in Jarkesy Mean the End to HHS Civil Monetary Penalty Authorities as We Know...

Last June, the Supreme Court issued its decision in Securities and Exchange Commission v. Jarkesy, which holds that the Seventh Amendment entitles a defendant to a jury trial when the Securities and Exchange Commission (SEC)...more

Vinson & Elkins LLP

FERC Settles Decade-Old Enforcement Allegations

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In 2016, a new play called Hamilton was dominating Broadway, Pokémon Go was all the rage, and the Summer Olympics were held in Rio. Also that year, the Federal Energy Regulatory Commission (“Commission” or “FERC”) issued an...more

Jones Day

Court Rules DOL's ALJ Enforcement Scheme Likely Unconstitutional

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A government contractor challenged a U.S. Department of Labor ("DOL") Office of Federal Contract Compliance Programs ("OFCCP") enforcement scheme in federal court as violating the United States Constitution. The contractor...more

Cooley LLP

Will SCOTUS revive the nondelegation doctrine? Cert. granted in Consumers’ Research v. FCC

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When SCOTUS granted cert. in SEC v. Jarkesy, the case challenging the constitutionality of the SEC’s administrative enforcement proceedings, one of the questions presented was whether the statute granting authority to the SEC...more

Constangy, Brooks, Smith & Prophete, LLP

Court halts OFCCP enforcement proceedings against contractor

The future of DOL’s administrative law judges is now murky. When the Office of Federal Contract Compliance Program believes that a contractor has violated affirmative action obligations, its tried-and-true practice for...more

Proskauer Rose LLP

FTC Focus: Zeroing In On Post-Election Labor Markets

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Under Chair Lina Khan, the Federal Trade Commission elevated its focus on labor markets. It promulgated a rule attempting to ban noncompete agreements, now stayed and subject to litigation. It took action against alleged...more

Proskauer - Labor Relations Update

Amazon, SpaceX Must Navigate Procedural Roadblocks in Constitutional Challenge of NLRB

On November 18, 2024, the U.S. Court of Appeals for the Fifth Circuit heard oral argument on cases involving Amazon.com Inc. and SpaceX, respectively, challenging the constitutionality of the National Labor Relations Board...more

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

Federal Court Ruling in Texas Challenges OSHA’s Administrative Law Judge System

In May 2023, in the wake of a ruling by the Supreme Court of the United States that U.S. district courts have jurisdiction to consider structural constitutional claims against administrative agencies, we predicted that the...more

Genova Burns LLC

New Complaint Questions the Constitutionality of the Occupational Safety and Health Review Commission

Genova Burns LLC on

Kenric Steel, LLC, a New Jersey based steel fabrication company, filed a complaint in the U.S. District Court of New Jersey alleging that the Occupational Safety and Health Review Commission (OSHRC), an independent federal...more

A&O Shearman

FINRA Beats First Post-Jarkesy Challenge

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On September 4, 2024, Judge John Murphy of the U.S. District Court for the Eastern District of Pennsylvania dismissed on jurisdictional grounds the first post-Jarkesy constitutional challenge to FINRA’s disciplinary...more

Cranfill Sumner LLP

After Jarkesy, What Is Next for In-House Enforcement Proceedings?

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Much virtual ink has been spilled in the weeks and months since the Supreme Court issued its opinion in Securities and Exchange Commission v. Jarkesy—much attesting to that the decision was the death knell for in-house...more

Orrick, Herrington & Sutcliffe LLP

Suit against FDIC argues the agency is “unconstitutional” and violates Jarkesy

Recently, the U.S. District Court for the District of Columbia received a complaint from an individual plaintiff suing the FDIC, its heads, board members and an administrative law judge (ALJ) for allegedly subjecting the...more

Cooley LLP

Public Companies Update – July One-Minute Reads

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SCOTUS rules against SEC’s use of administrative law judges - In a 6 – 3 opinion issued June 27 in SEC v. Jarkesy, the US Supreme Court rejected the Securities and Exchange Commission’s use of in-house tribunals to...more

Jenner & Block

Client Alert: Latest Supreme Court Term Presents New Challenges for SEC

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The Supreme Court’s most recent term has forced the SEC to face new realities regarding its powers. As has been widely publicized, the Supreme Court’s overruling of Chevron in Loper Bright Enterprises v. Raimondo highlighted...more

Stoel Rives - Environmental Law Blog

SEC v. Jarkesy: In-House Adjudicators are Out and the Jury is In

Why do environmental professionals need to know about a recent securities case? Read on for details. In response to the Wall Street Crash of 1929, Congress passed the Securities Act of 1933, the Securities Exchange Act of...more

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