NCLA Thomas J. Powell, et al. v. SEC - New Civil Liberties Alliance
The New Civil Liberties Alliance (NCLA) is litigating against the U.S. Securities and Exchange Commission’s long‑standing “Gag Rule,” a regulation in place since 1972 that bars individuals who have settled enforcement actions with the SEC from publicly criticizing the agency for the rest of their lives, a restriction the organization argues violates the First Amendment. NCLA first petitioned the SEC to repeal the rule in 2018, renewed the petition in December 2023, and after the SEC denied the request in early 2024, filed a lawsuit in the Ninth Circuit seeking judicial review. The Ninth Circuit declined to overturn the rule, prompting NCLA to petition the Supreme Court in March 2026. In May 2026 the SEC administratively rescinded the Gag Rule, acknowledging its suppression of speech, but stated it would not enforce existing gag orders, leaving open the possibility of future reinstatement. NCLA therefore continues to pursue Supreme Court review to obtain a definitive constitutional ruling and to ensure that past gag orders cannot be revived. The case is active, with the Ninth Circuit and the Supreme Court as the relevant forums. NCLA serves as counsel, represented by senior litigation counsel Margaret A. Little and a team of attorneys and staff, and is supported by amici curiae including the Foundation Institute for Free Speech, the Rutherford Institute, and the Thomas More Society. The organization has issued multiple press releases, filed briefs, and generated media commentary to raise public awareness. Related cases involving administrative speech and due‑process challenges are listed for context.
Topics
SEC Gag Rule Challenge: Historical Context and Constitutional Claims
Overview of the 1972 SEC regulation that prohibits settled parties from speaking about the SEC, and the First Amendment and due‑process arguments NCLA raises against it.
Litigation Timeline: From 2018 Petition to 2026 Supreme Court Petition
Chronological narrative of NCLA’s actions: 2018 petition, 2023 renewal, 2024 SEC denial, Ninth Circuit lawsuit, 2026 Supreme Court petition.
NCLA’s Legal Team and Amici: Coalition Building for First Amendment Advocacy
Profiles of senior litigation counsel Margaret A. Little and supporting attorneys, staff, and amici curiae (Foundation Institute for Free Speech, Rutherford Institute, Thomas More Society).
Case Status and Judicial Path: Ninth Circuit and Supreme Court Proceedings
Current procedural posture, courts involved, and the significance of a potential Supreme Court decision for future enforcement of gag orders.
Public Outreach: Press Releases, Media Commentary, and Advocacy Materials
Summary of NCLA’s press releases, media op‑eds, and filing links used to mobilize public and legal support.
Related Legal Landscape: Comparable Cases Shaping Administrative Speech Law
List of related cases (e.g., American Securities Association v. SEC, Buckeye Institute v. IRS) that provide context for the broader fight over agency speech controls.