The Cato Institute is suing the Securities and Exchange Commission (SEC) for their policy forbidding discussion of civil settlements under threat of punishment. The Cato Institute wants to publish a book written by a man who claims he was a victim of SEC “prosecutorial abuse.” Ninety-eight percent of SEC cases end in settlements, but the public is not allowed to see the details and to determine if someone operating with limited resources has been coerced into accepting a settlement. (Reason, January 9, 2019, by Scott Shackford)
“Cato contends the gag provision of the author’s settlement – which has been a standard feature of SEC settlement agreements since 1972 – violates the First Amendment because it is a content-based restriction on free speech. Cato is asking the court to strike down all of the SEC’s previous gag agreements and enjoin the commission from entering broad speech prohibitions in the future.” (Reuters, January 9, 2019, by Alison Frankel)