Nelson Mullins partner Benjamin Lajoie authored a Law360 article examining the Delaware Supreme Court's ruling in Swan Energy Inc. v. Investor Protection Unit of the Delaware Department of Justice, the first prominent state supreme court decision on whether the U.S. Supreme Court's 2024 SEC v. Jarkesy holding extends beyond federal administrative enforcement to state securities regulators.

Lajoie explained that the Delaware Supreme Court unanimously upheld the state's administrative securities enforcement framework, finding that the jury trial principles underlying Jarkesy do not compel the same result under Delaware's constitution.

"Rather than treating Jarkesy as dispositive, based on the argument that state courts should be guided by their federal counterpart, the Delaware Supreme Court analyzed the challenge through Delaware's constitution, history and precedent," Lajoie said.

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