SEC Says It Will Begin to Seek More Facts in Some Settlements
Lane Powell Shareholder Doug Greene was quoted in an August 5 InsideCounsel article titled “SEC Says It Will Begin to Seek More Facts in Some Settlements.” The article discussed a new U.S. Securities and Exchange Commission (“SEC”) policy change that will require a settling party to make admissions in certain cases.
“If the SEC continues to worry about judges rejecting settlements it reaches that don’t include admissions, it will logically tend to apply its new policy more broadly, so how the 2nd Circuit rules [on Rakoff’s Citigroup order] is still very important,” says Douglas Greene, a shareholder at Lane Powell. …
… “That’s going to be a pivotal issue because the effect on a private case, and conceivably on a criminal case too, could be determined by the nature and the scope of the admission,” Greene says. “There could be modest admissions the SEC seeks that don’t have significant adverse consequences on the related litigation.”