U.S. Federal Judge In New York Criticizes SEC 'gag Orders' Policy

Oct 28 (Reuters) - A U.S. federal judge in New York on Friday called it "troubling" that a Securities and Exchange Commission (SEC) policy makes people who settle charges of fraud, insider trading or other allegations agree not to deny them later. Under the decades-old policy, defendants who settle without admitting to allegations must agree not to publicly deny them. The practice, a standard in SEC settlements, has been upheld in courts despite drawing ire from critics including former defendants, the libertarian Cato Institute and other groups that favor limiting government power.

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