SEC denies petition to change ‘gag order’ rule after 5 years 

The US Securities and Exchange Commission will not be changing its long-established rule that prohibits defendants from publicly claiming innocence after penning settlement agreements with the regulator. 

The SEC on Tuesday denied a petition to amend the so-called “gag-order” rule filed by the nonprofit New Civil Liberties Alliance (NCLA) more than five years ago. Under the policy, which was adopted in 1972, defendants who settle are barred from ever claiming innocence or “creating the impression that the complaint is without factual basis.” 

The NCLA asked the SEC to change the rule in 2018, claiming that prohibiting US citizens from criticizing their cases post-settlement…

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