Mark Cuban, Hedge Fund Managers Urge Trim of SEC Jurisdiction

Mark Cuban and hedge fund managers Phillip Goldstein and Nelson Obus asked the Fifth Circuit to find the Securities and Exchange Commission’s use of administrative hearings to determine liability for alleged securities law violations, without a jury trial, unconstitutional.

The trio filed a friend of the court brief Thursday in support of Michelle Cochran—an accountant facing an SEC enforcement action who is pursuing a constitutional challenge against the agency.

The SEC procedures violate the Seventh Amendment right to trial by jury, the amici said.

And allowing the SEC to “forum shop” by keeping cases out of federal court leads to ...