Jarkesy, Cochran, and the Attack on ALJs

Michael Birnbaum, Haima Marlier, Gerardo Gomez Galvis, and Justin Young authored an article for Insights discussing the impact of Jarkesy v. SEC in the U.S. Court of Appeals for the Fifth Circuit, which issued a scathing rebuke of the Securities and Exchange Commission’s (SEC) use of administrative law judges, and the U.S. Supreme Court’s grant of certiorari in SEC v. Cochran, which examines district courts’ jurisdiction to consider actions to enjoin ongoing SEC administrative actions.

“The practical impact of Jarkesy and Cochran is to leave the SEC and numerous other federal agencies facing serious questions about the continued viability of their in-house courts,” the authors wrote. “Until these issues are resolved by the Supreme Court or Congress, litigants will undoubtedly continue to challenge the ability of the SEC and other government agencies to even bring such cases before such tribunals.”

Read the full article.