Adam Aderton, Elizabeth P. Gray and A. Kristina Littman are Partners at Willkie Farr & Gallagher LLP. This post is based on a Willkie memorandum by Mr. Aderton, Ms. Gray, Ms. Littman, and Erik Holmvik.
In June, four blockbuster court decisions were issued that will reshape the U.S. Securities and Exchange Commission’s (the “SEC” or “Commission”) exercise of its authority in important ways. At the same time, regular business continued at the SEC as it brought a number of enforcement actions spanning several hot-button areas, including cybersecurity, artificial intelligence, and the registered investment adviser Marketing Rule. In this alert, we briefly summarize the top seven securities enforcement and litigation developments from the last month, including:
- Two seismic Supreme Court decisions overruling Chevron deference and reshaping administrative law;
- The Supreme Court’s recent decision in SEC v. Jarkesy;
- The Fifth Circuit’s ruling vacating the SEC’s new private fund rules;
- A novel action applying Exchange Act Section 13(b)(2)(B) in the cybersecurity context;
- An action targeting misstatements made by issuer regarding its use of artificial intelligence;
- A Marketing Rule action arising from misleading performance advertisements; and
- The $4.5 billion penalty agreed to by Terraform Labs and its founder following their April fraud verdict.
