Supreme Court lets challenges to federal agencies go forward

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The Supreme Court is allowing challenges to the structure of two federal agencies to go forward in federal court

. The high court ruled unanimously Friday, April 14, 2023, to allow challenges to the structure of both the Federal Trade Commission and the Securities and Exchange Commission to go forward in federal court. ruled unanimously

In one case, the FTC had brought an enforcement action against Axon Enterprise, the Arizona-based company best known for developing the Taser, arguing that its purchase of its competitor Vievu for approximately $13 million was improper. The other case involved an SEC enforcement action against Michelle Cochran, a certified public accountant. Axon and Cochran responded by suing in federal court and arguing that the structure of the FTC and SEC respectively are unconstitutional.

Justice Elena Kagan wrote in an opinion that the question for the court was whether federal courts can “resolve the parties' constitutional challenges to the Commissions' structure.” “The answer is yes,” she wrote, saying federal courts are not barred from “entertaining these extraordinary claims.”

 

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