'Existential threat': Alito’s megadonor to use ruling the justice supported to dispute new rules

25 June 2023

United States Supreme Court Justice Samuel Alito's billionaire donor's hedge fund, Elliott Management, plans to dispute a new set of financial regulations that were created to combat fraud, Jacobin reports.

This comes after the justice's Wall Street Journal op-ed ran earlier this week "in what appeared to be an effort to preempt" a "ProPublica report that raises questions about Alito's failure to recuse himself from a case involving hedge fund magnate Paul Singer, as well as allegations that Alito failed to 'list certain items as gifts' on his 2008 financial disclosures."

Using a Supreme Court decision supported by Alito, according to the report, Elliot suggests "the rules are unconstitutional, and could ultimately try to bring a case before Alito to strike down the new regulations if they are enacted."

Alito wrote in the WSJ op-ed, "ProPublica has leveled two charges against me. First, that I should have recused in matters in which an entity connected with Paul Singer was a party and, second, that I was obligated to list certain items as gifts on my 2008 Financial Disclose [sic] Report."

Per Jacobin, "Elliott’s efforts to weaponize a recent Supreme Court case to block anti-fraud rules — and to potentially use the high court to kill them — spotlights how judges are in key positions to help billionaires who provide them with gifts and other largesse."

According to the report, an attorney for Elliott Elliott said, "This would pose an existential threat to the activist investor’s business model."

Jacobin's full report is available at this link.

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