Patriarch Partners head Lynn Tilton has once again filed suit against the Securities and Exchange Commission, this time claiming that the government is illegally forcing her into proceedings before ready to stand trial. This is a continuation of a two-year war between the two sides as the new lawsuit stands to slow down the government’s attack.
From the SEC’s perspective, the suit stems from the regulator claiming that Tilton’s private equity firm failed to properly value distressed assets in its portfolio. The result of this would result in allegedly collecting high management fees from investors based on the asset’s falsely reported value.
This comes on the heels of her previous suit against the Securities and Exchange Commission revolving around the decision to have the hearings held in administrative proceedings rather than federal court. Tilton’s suit, filed two days after being charged, also stated that the SEC’s appointment of in-house judges was unconstitutional as she felt these hearings are typically stacked against the defendant. The injunction was later denied, being reaffirmed by a court of appeals in June as well.
Though scheduled to take place this coming October, the possible success of Tilton’s suit could postpone the trial to December.