The Securities and Exchange Commission raised a few eyebrows recently when it filed a friend-of-the-court brief urging the U.S. Supreme Court to adopt an extremely tough standard that plaintiffs would have to meet when they try to sue public companies for fraud.
Although some lawyers defend the SEC’s decision to file the brief, others question the wisdom of the Commission siding with the companies it regulates on a legal issue that has no direct impact on the SEC’s own enforcement activities.
