Facing a string of recent high-profile courtroom defeats, the Securities and Exchange Commission wants to a hire a mock trial firm to help agency lawyers get ready for big cases.
A jury consulting firm would assist the SEC on “high profile and/or complex” cases by hiring dozens of mock jurors and videotaping arguments from trial lawyers to help them fine tune their closing arguments.
SEC officials declined to say whether the move comes as the result of any concerns about the agency’s trial track record. While they say they’ve used jury consultants before, the agency has suffered some big recent setbacks.
Last week, for instance, a legal trade news website — law360.com — noted the SEC trial loss against a former executive of government contractor NIC Inc. in a story headlined, “SEC’s Courtroom Cred Slips as Trial Losses Mount.” A jury had ruled against the agency when it found NIC’s former chief financial officer not guilty of a dozen federal charges brought by the SEC.
Two months earlier, the SEC was defeated at trial after accusing Dallas Mavericks owner Mark Cuban of insider trading. And in another closely watched case, the SEC lost last year after a jury cleared former Citigroup employee Brian Stoker, whom regulators accused of negligence in a mortgage securities case.
“If my case is any indication, the SEC has no concept of reality when it comes to dealing with juries,” he said.
“Getting feedback will create self-awareness for their attorneys,” Mr. Cuban said. “The big question will be what happens when a mock jury tells them they have no case.”
SEC officials declined to say whether the move to bring a contractor aboard comes because of any specific trial outcomes, but they note the agency has hired jury consultants before.
“Like many litigants, we use jury consultants when it’s appropriate. We solicit for these services under government procurement rules so they are available if needed,” SEC spokesman Jon Nester said.
Marshall Hennington, a jury consultant, said defendants will spend whatever they need to for any trial edge they can get when careers and reputations are at stake.