Opinions of the U.S. Supreme Court justices on the day they issued their orders on pending appeals, June 24, 2024, in Washington, United States.
Nathan Howard | Reuters
WASHINGTON — Liberal Justice Sonia Sotomayor has accused the Supreme Court’s conservative majority of seizing power for itself as it limits the authority of federal agencies in a series of rulings, including one on Thursday targeting U.S. securities exchanges The committee’s ruling.
In her dissent, she said the ruling limits the SEC’s ability to enforce securities laws and is part of a “troubling trend” of courts reducing regulators’ powers.
She cited other recent rulings in which courts have made it easier for presidents to fire independent agency heads and limited the power of in-house judges.
“There is no doubt that today’s decision is a power grab,” Sotomayor wrote. She also took the extra step of reading a summary of her dissent from the judge, who was particularly unhappy with the ruling. things done at the time.
In Thursday’s decision, the court ruled 6-3 that the ruling by an SEC in-house judge violated the right to a jury trial. The ruling could also have implications for other agencies using similar procedures.
This case is one of Some The court has heard conservative and business-led attacks on the power of federal agencies during its current term. The court has a 6-3 conservative majority, which is often sympathetic to such arguments.
Sotomayor referred to the ongoing attack on what critics call the “administrative state.”
“Litigants seeking to further dismantle the ‘administrative state’ have reason to rejoice in their victory today, but those of us who value the rule of law have little to celebrate,” she wrote.
The challenge centers on how the SEC enforces securities laws, including laws prohibiting insider trading. The SEC has long hosted an internal process by an administrative law judge. The agency can also file suit in federal court. In both sets of lawsuits, it could seek financial penalties.
Those subject to internal rulings complain that the process violates their rights and gives the SEC too much power by essentially creating a home-field advantage.
Chief Justice John Roberts hit back at Sotomayor, saying she “will allow Congress to centralize the roles of prosecutors, judges and juries in the hands of the executive branch,” according to the majority view.
He added that such an outcome was “completely contrary” to the requirements of the constitutional principle of separation of powers.
Hedge fund manager George Jarkesy faces SEC charges that he violated the law by making false statements and omitting relevant information in communications with investors while overseeing two hedge funds. securities laws, and he subsequently filed a legal challenge.
Jarkesy and his firm were ordered to pay a $300,000 fine, and he was barred from holding certain positions in the securities industry following an internal lawsuit in 2014. “
Jaxsy’s legal reforms have billionaire backing Musk and Mark Cuban.
A three-judge panel of the New Orleans-based 5th U.S. Circuit Court of Appeals ruled against the agency, prompting the SEC to ask the Supreme Court to intervene.
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