22 Mar Regulation A+ Lawsuit Arguments Set

According to Crowdfund Insider, spring will be a key season for the lawsuit brought by two US states to challenge the SEC rules adopted under the Regulation A provisions of the Jumpstart Our Business Startups (JOBS) Act of 2012. On April 14, final oral arguments will be held in the US Court of Appeals in DC on the various pending motions. There is no question some players seriously considering jumping into the new Reg A+ regime have held off pending the resolution of this lawsuit.

The two plaintiff states, Massachusetts and Montana, which are really a proxy for the North American Securities Administrators Association (NASAA), believe the SEC went beyond the authority granted to it under the JOBS Act to modernize Regulation A. Most (including your humble blogger) believe the case is without substantive merit if one looks beyond terms and labels and focuses on the substantial investor protections built into the SEC rules as adopted.

After oral argument how long until the Appeals Court decides? No clue. Hopefully another season doesn’t pass with this continued uncertainty over the heads of those trying to bring exciting companies public in this new brilliantly crafted regime.