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ARTICLE · 10 JANUARY 2023

Jarkesy v. SEC: A Case That May Change America

Taft, Stettinius & Hollister LLP
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It seems that the federal administrative agencies are besieged by constitutional attacks on all sides. That the administrative-state cases — plural — changing America will arise sooner...

United StatesLitigation, Mediation & Arbitration
Sohan Dasgupta
Sohan Dasgupta
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It seems that the federal administrative agencies are besieged by constitutional attacks on all sides. That the administrative-state cases — plural — changing America will arise sooner or later has been in little doubt. But the fact that the issues would arise in a single case was not on anyone's radar. However, this is precisely what has happened.

A serious, concentrated attack on agencies was ossified by the U.S. Court of Appeals for the Fifth Circuit when, on May 18, 2022, it decided Jarkesy v. Sec. & Exch. Comm'n. In a remarkable opinion, a 2-1 panel of the Fifth Circuit held that the Securities and Exchange Commission or actions related to it violated the Constitution in the following ways:

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