Gray & Company Issues Statement on Today's Favorable Court Ruling in its Case Against the SEC

Aug 05, 2015, 18:39 ET from Gray & Company

ATLANTA, Aug. 5, 2015 /PRNewswire/ -- Gray & Company ("Gray" or the "Company") today issued the following letter to its clients in response to an injunction from U.S. District Court Judge Leigh M. May declaring the SEC's civil administrative proceeding against the Company's affiliate Gray Financial, its president Larry Gray and its co-CEO Bob Hubbard to be unconstitutional. The case is Gray Financial Group Inc et al v SEC, No. 15-00492, and is being tried in the Northern District of Georgia.

-------------------------------------------------------------------------------------------------------------------------------

August 5, 2015

Dear Clients:

We are pleased to announce that we just won a significant court victory against the SEC and its "home-cooked" system of administrative proceedings.

Today, United States District Court judge Leigh Martin May, Northern District of Georgia, issued an injunction declaring the SEC's civil administrative proceeding against us to be unconstitutional.  She preliminarily enjoined the SEC from proceeding against us in that forum.  Although the SEC may try to appeal Judge May's well-reasoned decision, it provides strong independent validation of what we've known all along: the SEC effort to argue this case before its "in-house" court rather than before an impartial U.S. District Court and a jury of one's peers is illegal and unjust.  It reflects the fact that the SEC prefers its own hand-picked forum because it knows that its claims have a better chance of going unchallenged.  If the SEC does appeal, Gray will continue its legal fight.

By way of reminder, today's Federal Court ruling arises from the lawsuit we filed in February to stop the SEC's administrative proceedings against us, and challenging on constitutional grounds the SEC's use of these administrative proceedings in enforcement matters.  For months now, the SEC has been trying to prevent us from ever obtaining the legitimate discovery we are seeking into the constitutionality and fairness of its administrative law process.

To reiterate, we categorically deny the SEC's claims against Gray.  We will vigorously defend ourselves.  We fully stand behind our fund-of-fund investment vehicles and advisory services.  The SEC's arguments are without merit and are based on the SEC's misinterpretation of a new Georgia statute that permits Georgia public pension plans to reduce investment volatility and increase potential returns through alternative investments.

I do want to reassure you that we have placed the legal case in the hands of experienced and talented legal counsel so that, as always, we first and foremost remain focused on providing you with the high quality investment advice that you have come to expect from us over the past two decades. Our business continues to operate in the normal course.

If you'd like to discuss this or if you have any questions, please feel free to call me directly at (404) 883-2508.

Sincerely,
/s/
Laurence O. Gray, Founder and President

About Gray & Company
Gray & Company, established in 1991, is an independent investment advisory firm with offices in Atlanta and Chicago.  Gray & Company provides comprehensive investment guidance and customized solutions to Pension Funds, Endowments, Private Foundations, Corporations, Taft-Hartley Plans and Trusts.  Since its inception, Gray & Company has been highly regarded within the industry for its investment manager research particularly as it relates to minority and women owned firms.

 

Contacts
Eric Berman
Kekst and Company
eric-berman@kekst.com
(212) 521-4894

Andrea Calise
Kekst and Company
andrea-calise@kekst.com
(212) 521-4845

SOURCE Gray & Company