Arecent ruling by the 11th Circuit Court of Appeals is expected to prompt changes in the way the Securities and Exchange Commission crafts one of its most widely used enforcement tools, experts say.
In a footnote near the end of its opinion in SEC v. Smyth, the U.S. Court of Appeals for the 11th Circuit in Atlanta recently ruled that the broad, “obey the law” injunctive orders the SEC commonly seeks are “unenforceable,” and reiterated its stance that injunctions must be written so defendants know exactly what conduct is prohibited.
