SEC Calls In-House Judge Challenge Moot After It Dropped Case

An investment adviser’s second lawsuit challenging the SEC’s in-house judges on constitutional grounds should be dismissed as moot, the agency said Monday, citing a mix-up that led it to toss dozens of internal cases.

The Securities and Exchange Commission’s enforcement case against Christopher Gibson was among those affected by a database issue that failed to protect adjudication staff memos from access by enforcement staff, according to the brief, filed in the US District Court for the Northern District of Georgia.

The SEC dropped the cases “as a matter of discretion to preserve the Commission’s resources, rather than in response to ...