On June 1, the Second Circuit in Tilton et al. v. SEC, No.
15-2103 (2d. Cir. Jun. 1, 2016), echoed recent Seventh and D.C.
Circuit decisions (respectively, Bebo v. SEC, No. 15-1511 (7th Cir.
Aug. 24, 2015), cert. denied, 136 S. Ct. 1500 (Mar. 28, 2016), and
Jarkesy v. SEC, No. 14-5196 (D.C. Cir. Sept. 29, 2015)) in finding
that constitutional or other challenges to SEC proceedings cannot
go forward in court until the administrative proceeding ends;
review can only be sought as an appeal from a final decision by the
Commission. The Second Circuit's decision in Tilton
creates unanimity among the circuit courts that have addressed the
issue to date, although, as we
previously reported, the Eleventh Circuit is likely to rule on
the issue sometime this year in Hill v. SEC, No. 15-12831. Unless
the Eleventh Circuit bucks this trend and creates a circuit split,
it now looks unlikely that the Supreme Court will weigh in on this
issue (particularly because the Supreme Court
