Episode 25: Powell, et al. v. United States Securities and Exchange Commission
Powell, et al. v. United States Securities and Exchange Commission, argued before Circuit Judges Sidney R. Thomas, Daniel A. Bress, and Ana de Alba in the U.S. Court of Appeals for the Ninth Circuit on February 13, 2025. Argued by Margaret A. Little of the New Civil Liberties Alliance (NCLA) (on behalf of Powell, et al.) and Archith Ramkumar (on behalf of the United States Securities and Exchange Commission).
Background of the case, from the Institute for Free Speech amicus brief:
For more than fifty years, the Securities and Exchange Commission (SEC) has used the threat of debilitatingly expensive litigation to coerce defendants into accepting a lifetime ban on speech. The SEC’s Gag Rule commands that, once defendants have settled, they can never publicly challenge—or even permit others to undermine—the truth of the SEC’s factual allegations, even if those allegations are indisputably false.
The SEC’s Gag Rule is a ban not just on speech but a ban on true political speech. It imposes an eternal, viewpoint-discriminatory prior restraint on speech critical of the SEC’s enforcement regime. For a country with “a profound national commitment to the principle that debate on public issues should be uninhibited, robust, and wide-open, and that it may well include vehement, caustic, and sometimes unpleasantly sharp attacks on government and public officials,” the unconstitutionality of this policy is clear. New York Times Co. v. Sullivan, 376 U.S. 254, 270 (1964). Nonetheless, the SEC refuses to initiate a rulemaking to amend its Gag Rule.
Statement of Issues Presented, from the Petitioner’s Opening Brief:
Resources:
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