SEC ends its ban on denying wrongdoing in settlements
The SEC ended a 1972 policy barring settling defendants from refuting allegations. Chair Paul Atkins said the move protects free speech for those who settle.
Xurve View
Xurve View
The United States Securities and Exchange Commission (SEC) ended its 54-year policy on Monday that barred defendants from denying allegations after settling enforcement cases. The move reverses a 1972 regulation that required settling parties to neither admit nor deny wrongdoing. Under the new policy, defendants may publicly address the merits of settled cases.
The SEC previously rejected ending this practice during the Biden administration, making Monday's reversal a significant shift. SEC Chair Paul Atkins cited free speech protections as the rationale for the change.
