Via Thomas Potter and the Burr & Forman Securities Litigation blog I discovered that earlier this week, U.S. District Judge Leigh Martin May (N.D. Ga.) issued a preliminary injunction preventing the SEC from pursuing its administrative proceeding against Ironridge Global IV, Ltd. The Ironridge Global IV case, filed by the SEC back in June 2014, is now the third AP in which Judge May has enjoined the agency from proceeding with its enforcement action.
Although several courts, including the Seventh Circuit (Bebo v. SEC) and the D.C. Circuit (Jarkesy v. SEC), have held that federal courts do not have subject matter jurisdiction over challenges to the constitutionality of the SEC's APs, Judge May has repeatedly held that she does have such jurisdiction. According to Potter, the two prior cases in which Judge May enjoined the SEC from proceeding (SEC v. Gray Financial Group and SEC v. Hill) have been consolidated for appeal and will be heard by the Eleventh Circuit.
As Potter notes, the consolidated appeal of Judge May's decisions now pending in the Eleventh Circuit is significant in that it "either will create a Circuit split (if affirmed) or hasten the demise of these challenges (if reversed)." In addition, the issue is also slated to be heard by the Second Circuit.