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Constitutional Law,
Administrative/Regulatory,
9th U.S. Circuit Court of Appeals

Aug. 7, 2025

9th Circuit upholds SEC rule barring settlement defendants from denying allegations

A constitutional challenge to the SEC's long-standing "no deny" policy was rejected, but attorneys plan to take the fight further.

A 9th U.S. Circuit Court of Appeals panel ruled Wednesday that the U.S. Securities and Exchange Commission's longstanding rule requiring defendants who reach settlements with the agency not to deny the allegations later is constitutional on its face.

"Provided that any limitation on speech remains within proper bounds, and given the background ability to waive First Amendment rights at least to some extent, the SEC has an interest in giving defendants the option to agree...

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