Solid argument from Gary Matsko at WLF:
The SEC requires all settling parties to agree that they will neither directly nor indirectly make any public statement that calls into question the accuracy of any allegation made in the SEC’s complaint. Thus, a settling party who had meritorious defenses, but could not afford to litigate, may not say so publicly. Moreover, the policy, intended to put teeth into the SEC’s enforcement message, can have the unintended consequence of allowing government lawyers to operate “in the shadows” by preventing those with the greatest knowledge of the stated accusations or the process used to develop those accusations from criticizing either.
He goes on to make a very impressive case.
