The U.S. Supreme Court has ruled in favor of George R. Jarkesy, Jr. and Patriot28, L.L.C., affirming that the Securities and Exchange Commission's (SEC) in-house enforcement proceedings are unconstitutional. The decision upholds a prior ruling by the Fifth Circuit.
Beth Milito, Executive Director of NFIB’s Small Business Legal Center, commented on the outcome: "NFIB is pleased that the Supreme Court upheld the lower court’s decision and ruled in favor of small businesses." She added, "Small business owners deserve fairness and accountability from the regulatory bodies whose actions impact their operations. This decision affirms the essential right to a jury trial outlined in the Constitution and will restore clarity and justice to the agency’s enforcement process."
The case raised questions about whether SEC's enforcement actions violated respondents' Seventh Amendment right to a jury trial. The Supreme Court's ruling is seen as preventing many small businesses from being penalized without constitutional due process.
NFIB has been actively involved in this legal battle, filing an amicus brief alongside the Chamber of Commerce. The NFIB Small Business Legal Center continues its efforts to protect small business owners' rights across federal and state courts.
