US Supreme Court Rejects Review of SEC Gag Rule, Leaving Rescinded Settlement Policy Unexamined
Updated
Updated · Bloomberg · Jun 29
US Supreme Court Rejects Review of SEC Gag Rule, Leaving Rescinded Settlement Policy Unexamined
2 articles · Updated · Bloomberg · Jun 29
Summary
The justices on Monday declined without comment to hear a constitutional challenge to the SEC’s former policy barring settlement targets from publicly disputing the agency’s allegations.
The case asked whether that so-called gag rule violated free-speech rights by forcing people and companies that settled enforcement actions to stay silent afterward.
Because the SEC has already rescinded the policy, the court’s refusal leaves the rule’s constitutionality unresolved rather than setting a broader precedent on the issue.