Second Circuit Vacates Judge Rakoff’s Rejection of SEC’s Citigroup Settlement | The D&O Diary

On June 4, 2014, in a long-awaited but not unexpected opinion (here), the Second Circuit ruled that Southern District of New York Judge Jed Rakoff had improperly rejected the $285 million settlement of the SEC’s enforcement action against Citigroup. Because the case involved the question of whether or not parties may enter into “neither admit nor deny” settlements with the SEC, the Second Circuit’s consideration of the case had been very closely watched. The Second Circuit’s decision appears to preserve the ability of litigants in most cases to enter settlements with the SEC without having to admit to liability. The opinion also represents a strong reaffirmation of judicial deference to the SEC’s discretionary authority to settle its cases.

via Second Circuit Vacates Judge Rakoff’s Rejection of SEC’s Citigroup Settlement | The D&O Diary