Cato Institute Can’t Sue SEC Over ‘No Deny’ Settlements

Feb. 10, 2020, 9:45 PM

The Cato Institute’s First Amendment challenge to the Securities and Exchange Commission’s practice of conditioning legal settlements on “no-deny” provisions must be dismissed, a federal court in Washington ruled Monday.

These provisions bar defendants who settle SEC civil or administrative actions from publicly denying the allegations in the complaint against them. Cato doesn’t have standing to challenge the commission’s policy, the U.S. District Court for the District of Columbia held.

Cato claimed it couldn’t publish a book recounting perceived overreach by the SEC because the author was subject to such a “lifetime gag order.” The libertarian think tank also alleged ...

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