Federal Lawsuit Challenges SEC’s Lifetime Gag Order Policy

Federal Lawsuit Challenges SEC’s Lifetime Gag Order Policy
The U.S. Securities and Exchange Commission seal hangs on the facade of its building in Washington on Sept. 18, 2008. Chip Somodevilla/Getty Images
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A libertarian think tank is suing the U.S. Securities and Exchange Commission (SEC) over the agency’s policy of placing lifetime gag orders on defendants who settle civil enforcement cases.

The Cato Institute, based in Washington, says the policy serves to silence potential critics of the SEC’s vast civil enforcement powers, thereby violating First Amendment protections of free speech and a free press.