SEC’s Khuzami Defends ‘Admit Nor Deny’ Settlements

“To turn down that type of reasonable settlement due to the absence of an admission is in my view often unwise policy,” Mr. Khuzami said, speaking at a conference hosted by the Consumer Federation of America. He added that the SEC’s policy of prohibiting firms from denying the facts of the case is superior to other federal agencies. He noted that in Facebook’s recent settlement with the Federal Trade Commission to resolve allegations that it deceived users about how it used their personal information, the social-networking denied the FTC’s allegations.

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