US Corporate Law News: US Supreme Court agrees to review constitutionality of appointment of SEC administrative law judges

11 February 2018 | Applicable law: US

The U.S. Supreme Court recently granted a writ of certiorari in the case of Raymond J. Lucia Cos., Inc. v. SEC

The case challenges the constitutionality of the process by which the U.S. Securities and Exchange Commission appoints administrative law judges (ALJs). The Supreme Court will determine whether or not SEC ALJs are "inferior officers" who are required to be appointed by the Heads of Departments under the U.S. Constitution. If the ALJs are found to be "inferior officers" rather than employees, they would need to be appointed by the SEC. The ultimate decision may have an impact on the how certain positions are filled at various federal agencies.

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