Securities Law
SEC Considers Releasing 'a More Fulsome Record' in Settlements
The Securities and Exchange Commission is considering publicizing more detailed findings of its investigations when it settles suits with individuals and corporations.
SEC settlements are often only a few pages in length, but SEC enforcement director Robert Khuzami says that could change, the Washington Post reports. “We’re taking a look at the practice and deciding whether it makes sense to provide a more fulsome record,” he told the newspaper.
Khuzami said the change would increase transparency and help explain actions taken by the SEC.
Securities lawyers see other likely effects. They say the change could make it easier for shareholder plaintiffs to piggyback on SEC claims and could make defendants more reluctant to settle, the story says.
