SEC’s ‘Gag Order’ Policy Survives Challenge at Fifth Circuit (1)

The Securities and Exchange Commission’s policy of silencing defendants who settle with the agency withstood a challenge from a Texas financial planner, although a federal appeals court avoided his constitutional arguments.

The US Court of Appeals for the Fifth Circuit on Tuesday upheld a lower court ruling that found Christopher Novinger’s challenge to the SEC’s longstanding “no admit, no deny” policy was procedurally improper.

A unanimous three-judge panel for the court found that the district court hadn’t issued a final order in Novinger’s bid to alter the terms of his SEC consent order, and as a result the Fifth Circuit ...