SEC gag order practice may reach Supreme Court

The Securities Exchange Commission has since 1972 muzzled principals after their cases have been settled. They must promise never to speak publicly about any allegations in complaints or plant the idea that the complaints were without factual basis. The U.S. Supreme Court will decide whether to hear a case on the gag order Romeril v. Securities and Exchange Commission some time in the next few months. (The New York Times, April 18, 2022, by Adam Liptak)

The New Civil Liberties Alliance (NCLA) filed a writ of certiorari with the Supreme Court challenging on First Amendment grounds the lifetime gag orders the SEC requires in all cases it settles. The NCLA contends that the gag order constitutes prior restraint, one of the most egregious restraints on free speech, and deprives the public of useful information on the practices of an important government agency. (Yahoo! News, March 21, 2022, by Globe Newswire)

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