The U.S. Securities and Exchange Commission has rescinded its decades-old policy for enforcement settlements under which defendants that settled could not publicly deny the allegations in a complaint or allow others to do so on their behalf. Settling parties will no longer have to restrict their public statements as a condition of resolving an SEC enforcement action. The change does not alter the Commission’s use of settlements to resolve cases. In the accompanying statement, the SEC said the public will now be able to assess its case alongside any denials made by defendants, rather than under a settlement framework that limited the non-government party’s ability to speak.
U.S. Securities & Exchange Commission2026-05-18
U.S. Securities and Exchange Commission rescinds no admit no deny settlement policy that barred public denials
The U.S. Securities and Exchange Commission has rescinded its long-standing policy that barred settling defendants from publicly denying allegations in enforcement actions. Settling parties will no longer face restrictions on their public statements as a condition of settlement, with the SEC stating that the public can now assess its case alongside any denials by defendants.