Rakoff

There are reports that the Securities & Exchange Commission is going to modify its position of allowing parties to settle securities fraud actions without admitting or denying the SEC’s allegations.

Now, it’s getting very nasty.  

The Securities and Exchange Commission has made good on its threat to appeal the decision by Federal District Court Judge Jed Rakoff rejecting the SEC’s proposed $285 million settlement with Citigroup.

Tip of the hat to the Wall Street Journal Law Blog for this post: Is Rakoff Fever Spreading? If more judges are going to be questioning the SEC’s settlements, it may lead to significant changes in the way the SEC operates.

As we have discussed, Manhattan Federal District Court Judge Jed Rakoff last month declined to approve a settlement between the SEC and Citigroup because, in the judge’s view, the underlying allegations were “unsupported by any proven or acknowledged facts.” Judge Rakoff declared that the proposed settlement was a

The SEC has appealed Judge Rakoff's decision refusing to approve a $285 million settlement with Citigroup.  More to follow...

Federal District Court Judge Jed Rakoff roiled the SEC’s world last month when he rejected a proposed $285 million settlement between Citigroup and the SEC as a “very good deal for Citigroup” that was “inherently dangerous.” As we noted, the SEC’s Robert Khuzami

The remarkable ruling yesterday by Manhattan District Judge Jed Rakoff rejecting a proposed $285 million settlement between Citigroup and the SEC is not sitting well with the SEC.

In a striking decision that undoubtedly will be supported by a vast swath of Americans, from the Tea Party to OccupyWallStreet, from homeowners to the unemployed, and that will cause worry in boardrooms across the country, U.S. District Court Judge Jed S.