Musk and Cuban Submit Brief to Supreme Court Over SEC's Jury-Less Proceedings
Summary:
Elon Musk and Mark Cuban, along with others, have submitted a joint amicus brief to the Supreme Court expressing concerns over the SEC’s approach to internal proceedings, specifically the absence of juries. They argue that this approach could breach the Seventh Amendment right to a jury trial and lead to unjust outcomes. The case in focus is SEC v. Jarkesy, where the defendant argues his Seventh Amendment rights were violated. Musk and Cuban have called upon the justices to affirm the decision made by the 5th Circuit, arguing that favoring administrative proceedings over federal court juries undermines the SEC's mission.
Elon Musk and Mark Cuban, among others, recently joined forces to submit a joint amicus brief to the Supreme Court. They expressed worries over the methods by which the Securities and Exchange Commission (SEC) carries out internal procedures, often without the involvement of juries. Mark Cuban, a wealthy crypto investor and DeFi supporter heavily involved in the crypto industry, and Elon Musk, the head of both Tesla and SpaceX who recently reconfigured Twitter, are both outspoken about the uneven results produced by these administrative proceedings, especially when those facing SEC accusations may be denied their Seventh Amendment right to trial by jury.
The issue arises around the SEC v. Jarkesy lawsuit. In this particular case, the plaintiff, George Jarkesy, claims that his right to a jury trial under the Seventh Amendment was contravened. He asserts that the SEC's internal judgment process, which does not include a jury and is controlled by an administrative law judge appointed by the commission, infringes on these rights. This setup effectively places the roles of judge, jury, and enforcer in the same hands.
Cuban and Musk noticed a visible change in the SEC's strategies between 2013 and 2014. They noted that the SEC began managing a larger number of lawsuits internally instead of in federal courts. This shift occurred after a cluster of insider trading lawsuits faced rejections by juries. Musk is currently embroiled in his third significant legal battle with the financial watchdog, following lawsuits in 2018 and 2019. Currently, the agency is seeking a federal court's aid to solicit Musk's testimony concerning his purchase of Twitter, particularly his public comments about the transaction, according to court documents.
Yet, Cuban and Musk remain determined. They have put their case before the justices, urging them to back the 5th Circuit’s verdict. Their legal advisors argue that favoring administrative proceedings over the option of federal court juries undermines the SEC's expressed mission. Moreover, such rulings could cast an unfavorable light on investors and the markets the SEC aims to safeguard.
Published At
10/19/2023 10:24:52 AM
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