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Purpose
– To educate the audience about a significant change in SEC enforcement policy
Design/methodology/approach
– Research was performed of SEC officials' recent public statements about the change in enforcement policy.
Findings
– The SEC has increased enforcement activity in recent years, and the commission will begin insisting on admissions of wrongdoing in future settlement negotiations.
Practical implications
– Private litigants will seize on any admissions exacted by the SEC from corporate defendants. This could result in huge damage awards in private civil litigation.
Originality/value
– Explanation of the SEC's recent change in enforcement policy, specifically, how the SEC will demand certain corporate defendants admit to wrongdoing as part of any settlement with the commission.
© Authors
2014
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