Axon/Cochran DecisionĮarlier this month, the Supreme Court reached a unanimous decision in the Axon and Cochran appeals, holding that targets of enforcement actions brought by the FTC and SEC can file suit in federal district court challenging the constitutionality of the agency proceedings against them when the government has chosen to bring claims in an administrative proceeding before an ALJ.

We also describe what we learned from the oral argument in Slack and what clues the argument provided for how the Court might ultimately rule in that case. Below, we outline the Court’s ruling in the Axon and Cochran cases and assess the potential impact it could have. Pirani, which will determine whether private plaintiffs who buy shares in so-called “direct listings” can bring claims under Sections 11 and 12(a)(2) of the Securities Act of 1933. A few days later on April 17, 2023, the Court heard oral argument in Slack Technologies, LLC (f/k/a Slack Technologies, Inc.), et al., v. Cochran, which authorized parties to bring constitutional challenges to the Federal Trade Commission’s (FTC) and the Securities and Exchange Commission’s (SEC) ability to pursue claims in their “home courts” before administrative law judges (ALJs).

The Court may rule against the plaintiff on his ability to bring Section 11 claims, but remand his Section 12 claims for further proceedings in the court belowĮarlier this month, on April 14, 2023, The Supreme Court issued its decision in Axon Enterprise, Inc. Slack appeal raises questions as to whether claims under Sections 11 and 12(a)(2) of the 1933 Act can exist for so-called “direct listings” The Axon/Cochran decision held that a district court has jurisdiction to hear claims challenging the constitutionality of the FTC’s and SEC’s ALJs Our Securities Litigation Group analyzes the impact of the Axon and Cochran decisions on the use of administrative law judges (ALJs) and gleans clues about the future of direct listings from the Slack oral argument. To embed, copy and paste the code into your website or blog: Supreme Court Securities Law Roundup - The Axon Decision and Oral Argument in Slack v.

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