Stage Is Set For SEC Versus Rakoff In Appeals Court
The Securities and Exchange Commission has made good on its threat to appeal the decision by Federal District Court Judge Jed Rakoff rejecting the SEC’s proposed $285 million settlement with Citigroup.
In a filing with the U.S. Court of Appeals for the Second Circuit, the SEC asserted that Judge Rakoff’s decision, which would require a trial on the SEC’s allegations, would cause it “irreparable harm,” and it asked for an expedited review of the district court’s ruling.
The circuit court stayed all proceedings in the case and set a hearing for January 17.
Look for fireworks that day, and a precedent-setting, landmark financial fraud law opinion as a result.