SEC Sued by Cato Institute Over Tying Settlements to Silence

A Washington-based think tank has filed suit contending that the Securities and Exchange Commission’s practice of conditioning lawsuit settlements on lifetime gag orders violates the U.S. Constitution’s guarantee of free speech.

The unconstitutional practice has continued for 40 years, lawyers for the Cato Institute alleged in a complaint filed in federal court in Washington Jan. 9.

The Cato Institute is seeking a court order invalidating the practice.

The suit was motivated by the libertarian group’s intent to publish a book by an author subject to challenged restriction.

The case is Cato Institute v. SEC, D.D.C., No. 19-cv-47, complaint 1/9/19. ...