Bioelectronics Corp (BIEL)

[nadajda1308]

July 2, 2018. Key take aways of SEC judges case:

https://www.natlawreview.com/article/sec-administrative-law-judges-key-takeaways-and-lingering-questions-lucia-v-sec


Below is an excerpt from the last part of the article. I bolded the part that I find interesting, though it's premature to evaluate the outcome.

Key Takeaways and Questions
SEC’s Prior Ratification of ALJs. In November 2017, the Commission abandoned its position that its ALJs were “employees,” and ratified the prior hiring of its ALJs in a manner it deemed consistent with the Appointments Clause. In Lucia, however, the Court held that the ALJ who previously presided over that matter could not preside over Lucia’s new hearing “even if he has by now received a constitutional appointment.” The Court did not rule on whether the Commission’s ratification of the prior hires was adequate. It remains to be seen whether the Commission will maintain its position that the November 2017 ratification of its ALJs complied with the Appointments Clause.

Pending SEC Administrative Proceedings. On June 21, 2018, in reaction to the ruling in Lucia, the Commission announced that it was staying “any pending administrative proceeding initiated by an order instituting proceedings that commenced the proceeding and set it for hearing before an [ALJ], including any such proceeding currently pending before the Commission.” The stay will last for 30 days.

Previously Decided SEC Administrative Proceedings. The ruling in Lucia provides for relief to respondents who have made a “timely challenge” to the constitutionality of the Commission’s ALJs. Lucia contested the validity of the ALJ’s appointment during his appeal to the Commission and continued to assert that claim in the Court of Appeals and the Supreme Court. It appears, then, that respondents who did not previously make such a challenge may now be time-barred from doing so and ineligible for relief.

ALJs in Other Agencies. While the Court’s opinion was limited to the Commission’s ALJs, it raises constitutional questions about as many as 150 ALJs in many other federal agencies such as the CFPB and FDIC.