The viability of the Public Company Accounting Oversight Board’s enforcement proceedings is in question following the US Supreme Court’s decision in SEC v. Jarkesy, because the PCAOB has no statutory authority to bring such proceedings in federal court. The court held that the Seventh Amendment entitles a defendant to a jury trial when the SEC seeks civil penalties for securities fraud. That means the SEC can’t compel the defendant to adjudicate such claims in the agency’s in-house tribunals.
