FOR IMMEDIATE RELEASE
Washington, D.C. — The SEC rescinded its unconstitutional “gag rule,” scoring a win for free speech.
Earlier this year, HLLI, alongside the Manhattan Institute, filed an amicus brief with the U.S. Supreme Court urging the Court to strike down the Securities and Exchange Commission’s longstanding “gag order” policy as unconstitutional.
The brief supported a petition filed by the New Civil Liberties Alliance, which challenged the SEC’s policy of demanding defendants refrain from denying the agency’s allegations — even after entering into a settlement agreement.
Under that policy, individuals and firms accused of securities violations could settle enforcement actions only if they agreed to never again deny the allegations against them. In practice, this forced defendants to choose between costly, prolonged litigation and surrendering their right to speak freely about their own case.
“This is a win for free speech,” said Adam Schulman, senior attorney with the Hamilton Lincoln Law Institute. “Better late than never! After nearly ten years of fighting tooth-and-nail to maintain its policy, the agency has finally decided to do what it should have done in the first place. Defendants in SEC enforcement actions will no longer be forced to stay silent. The Constitution applies to everyone — including government agencies like the SEC.”
The name of the case is Powell, et al. v. Securities and Exch. Comm’n.
For more information about this case, please see our case webpage or contact the attorney below:
Adam Schulman, Senior Attorney
(610) 457-0856, adam.schulman@hlli.org.
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Every day, there are attempts to encroach upon Americans’ constitutionally protected rights. Our legal work is dedicated to countering these efforts.
The Hamilton Lincoln Law Institute is a public interest law firm dedicated to:
- Dismantling the progressive left’s attacks on civil society
- Countering government overreach
- Fighting class action abuse
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