Skip to main content

Newsroom

February 28, 2013

Supreme Court defines time limits for SEC to pursue civil cases

The Securities and Exchange Commission suffered a legal blow Wednesday when the Supreme Court unanimously rejected the agency’s position on how much time regulators have to pursue civil penalties.

In Gabelli v. SEC, two officials at the Gabelli Fund argued that the SEC waited too long to bring a civil case accusing them of authorizing an improper trading technique.

The high court agreed, ruling that the SEC must act within five years of a violation taking place. The SEC argued that time runs out five years after the alleged fraud was discovered. Lower courts were split on when the clock starts ticking.

The Supreme Court’s decision has significant implications for cases stemming from the 2008 financial crisis, attorneys said. If the court had accepted the SEC’s interpretation on timing, it could have potentially revived dead or dying cases.”

***

Read full Washington Post article here

In the News
Share

MEDIA REQUESTS

For media inquiries, please contact us at
press@bettermarkets.org or 202-618-6433.

Contact Us

For media inquiries, please contact press@bettermarkets.org or 202-618-6433.

To sign up for our email newsletter, please visit this page.

Name(Required)
This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact press@bettermarkets.org or 202-618-6433.

Donate

Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today