Constitutional challenges to the legitimacy of administrative law judges who preside over Securities and Exchange Commission cases must wait until the proceedings are no longer pending, and they cannot be made in federal district courts, the U.S. Court of Appeals for the Second Circuit held Wednesday.
The circuit found that Congress “implicitly precluded” district courts from entertaining challenges to the authority of administrative law judges based on the allegation that their appointment violates the Appointments Clause of Article II of the U.S. Constitution.
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