Partner Allison Kernisky Shares Insights on Supreme Court's Jarkesy Decision
Litigation attorney Allison Kernisky was interviewed by Barron's and The Wall Street Journal about the U.S. Supreme Court's ruling that defendants charged with fraud punishable by civil fines have a right to a jury trial in federal court. The case, SEC v. Jarkesy, was closely watched for its potential implications not only for the U.S. Securities and Exchange Commission (SEC) but also for other regulatory agencies like the U.S. Environmental Protection Agency (EPA) that utilize in-house administrative courts.
Ms. Kernisky commented to Barron's that during oral arguments, some justices focused on the Seventh Amendment right to a jury trial, so the decision did not come as a surprise. She told The Wall Street Journal that the agency itself expected as such.
"The SEC anticipated this outcome, so I don't think the ruling marks a seismic shift," she said.
Ms. Kernisky noted that the SEC will still be able to turn to administrative law judges (ALJs) for non-financial remedies, such as barring an individual from the securities industry. She also expressed interest in whether Congress could step in to craft legislation allowing federal agencies to use administrative penalties as a remedy.
Read more in The Wall Street Journal.
Ms. Kernisky also co-authored an article for Westlaw providing detailed analysis of the case background, court's decision and reasoning, and potential implications for the SEC and other federal agencies.