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Lawyers are often accused of elevating procedure over substance, emphasizing the need to follow the rules over reaching the proper outcome in a case. In dealing with the Securities and Exchange Commission, the focus lately has been arguing about where an action is filed, on the theory that picking the forum can be half the battle.
The issue is straightforward enough: Should charges of securities fraud and other violations be conducted in a federal district court or before an administrative law judge employed by the commission? For cases that have not been settled, defendants generally prefer to litigate in federal court because of the rights afforded there, including broad discovery procedures and an independent federal judge and jury to decide the case. The adoption of the Dodd-Frank Act in 2010 allows the S.E.C. to seek most remedies in the administrative forum, which involves a much more expedited proceeding that generally limits discovery by the parties to the evidence gathered during an investigation.
Source: DealB%k
