Financial Oversight and Management Board for Puerto Rico v. Centro De Periodismo Investigativo, Inc.

On May 11, 2023, the U.S. Supreme Court decided Financial Oversight and Management Board for Puerto Rico v. Centro de Periodismo Investigativo, Inc. The plaintiff, a nonprofit investigative journalism organization in Puerto Rico, sued the federally created Financial Oversight and Management Board after the Board denied access to public records related to debt restructuring. The plaintiff claimed the denial violated the First Amendment. The Board argued it enjoyed sovereign immunity as an arm of the Puerto Rican government. In an 8-1 decision written by Justice Elena Kagan, the Supreme Court held that the Board is not immune from suit because it is not an arm of the Commonwealth of Puerto Rico for sovereign-immunity purposes. The ruling allowed the First Amendment claim to proceed, emphasizing accountability and transparency in the oversight of Puerto Rico's fiscal crisis.

The U.S. Supreme Court affirmed the First Circuit, holding 8-1 that the Board does not enjoy sovereign immunity and the lawsuit may proceed. Justice Elena Kagan wrote the majority opinion, and Justice Clarence Thomas dissented.

Whether the Financial Oversight and Management Board for Puerto Rico is an arm of the Commonwealth of Puerto Rico entitled to sovereign immunity from a First Amendment lawsuit seeking public records.

The decision reinforced press access to government records and limited sovereign immunity for federally created oversight entities, increasing transparency and accountability in Puerto Rico's debt restructuring process. It also clarified the legal status of PROMESA-created boards under federal law.