Category: Administrative Procedure

SEC Administrative Law Judges Ruled Unconstitutional

A recent decision from the U.S. District Court for the Southern District of New York concludes that the manner in which Administrative Law Judges (“ALJs”) of the U.S. Securities and Exchange Commission (“SEC”) are appointed is improper under the Appointments Clause of Article II of the Constitution. The decision is important to the consumer finance industry for several reasons discussed in this article.