U.S. Court of Appeals for the Second Circuit

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Second Circuit vacates and remands District Court's order

June 04, 2014

The Second Circuit Court of Appeals ruled that the district court was wrong to require the SEC to establish the “truth”of its allegations as a condition of approving the settlement. The Second Circuit vacated the district court's order and remanded the case for further proceedings.

U.S. Chamber files amicus brief regarding requirements for settlement approval

May 21, 2012

NCLC urged the Second Circuit Court to overturn a district court’s novel refusal to approve a consent order between the SEC and Citigroup because the company did not admit wrongdoing. In this case, a district court held that a proposed settlement agreement between a government agency and a regulated party could not be approved without “cold, hard, solid facts, established either by admission or by trials.” In its amicus brief, NCLC argued that such a sweeping proposition is fundamentally at odds with well-established law permitting regulated companies to settle without admitting to allegations of wrongdoing which they dispute. Although this case arises in the securities-enforcement context, the potential implications of the district court’s decision are far-reaching.

Lori Alvino McGill of Latham & Watkins LLP represented the U.S. Chamber as co-counsel to the National Chamber Litigation Center in this case.

The Chamber filed this brief jointly with the Pharmaceutical Research and Manufacturers of America (PhRMA).

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