Clifford Chance

Second Circuit Reverses Judge's Rejection of SEC-Citigroup Settlement

5 June 2014

On Wednesday, June 4, 2014, a three-judge panel of the United States Court of Appeals for the Second Circuit vacated and remanded Southern District of New York Judge Jed Rakoff's November 28, 2011 order rejecting a settlement between Citigroup Global Markets, Inc. ("Citigroup") and the Securities and Exchange Commission ("SEC") in which Citigroup neither admitted nor denied any wrongdoing.  On the heels of Judge Rakoff's decision, the SEC modified its no admit/no deny practices, leading to an increase in settlements in which defendants were required to admit liability for their conduct.

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