Gupta sued the SEC in federal court, saying that the administrative proceeding deprived him of his constitutional right to a jury and also deprived him of the pre-trial discovery available in federal court but not in administrative proceedings.
He alleges the SEC's administrative action would deny him his right to a jury trial and other procedural safeguards available if the case had been brought in civil court.
On the eve of the criminal trial of Raj Rajaratnam, the Commission brought an administrative proceeding alleging that Gupta gave inside information to Rajaratnam.