Supreme Court Decision That Defendants Are Entitled to Jury Trial in SEC Antifraud Case Has Major Implications in International Enforcement

                 On June 27, 2024, the Supreme Court issued a decision in SEC v. Jarkesy, finding that when the Securities Exchange Commission (SEC) claims a defendant has violated securities antifraud provisions and pursues civil penalties, the defendant is entitled to a jury trial in federal court according to the Seventh Amendment. This decision is significant because it places limitations on the SEC’s use of its in-house tribunal with administrative law judges (ALJs), which the SEC commonly uses when presenting antifraud claims. The decision also has important implications for international enforcement cases involving civil penalties.