SEC ‘No-Deny’ Policy Can Continue, Ninth Circuit Panel Rules (3)

Defendants in Securities and Exchange Commission enforcement actions will still contend with a controversial “no-deny” policy when settling with the agency in court, after a panel of Ninth Circuit judges signed off on the practice.

The regulator has historically permitted the targets of court actions to settle without admitting wrongdoing, while requiring that they also not publicly deny the allegations, and the appeals court Wednesday deemed that condition constitutionally sound.

The opinion from Judge Daniel A. Bress denied the petition by individuals who entered “no-deny” settlements with the SEC to review the agency’s decision to keep the rule. The decision ...