The U.S. Supreme Court recently held that “[w]hen the SEC seeks civil penalties against a defendant for securities fraud, the Seventh Amendment entitles the defendant to a jury trial.” See Securities and Exchange Commission v. Jarkesy, Case No. 22-859. In reaching its conclusion, the Court observed that the Seventh Amendment “embrace[s] all suits which are not of equity or admiralty jurisdiction, whatever may be the peculiar form which they may assume,” including statutory claims if they are “legal in nature.” Here, because the remedy sought by the SEC consisted of civil penalties, the Court had no difficulty finding that the claims were legal in nature and therefore entitled the defendant to a jury trial, as opposed to an enforcement action before an administrative law judge.
For more, see the decision here.