WHX Corporation v. Securities and Exchange Commission

WHX Corporation (defendant) attempted a hostile takeover of DCA by making a tender offer only to shareholders eligible to vote at DCA's upcoming meeting, a step needed to change DCA's anti-takeover bylaws. The SEC (plaintiff) found this violated the All Holders Rule under Exchange Act section 14(d) by disadvantaging ineligible shareholders and issued a cease-and-desist order barring future violations; WHX appealed to the D.C. Circuit.

Whether the SEC may issue a cease-and-desist order against a party absent evidence of some risk that the party will violate the securities laws again in the future.