While it is true that the SEC will no longer allow companies to "neither admit nor deny" charges, this new rule will only apply to a fraction of cases. Specifically, the new language will only affect regulatory cases in which defendants have been convicted of a criminal charge or otherwise admitted wrongdoing. The impact of this change could mean that it is easier for some investors to recover losses in civil suits against firms and stockbrokers who have run Ponzi schemes and investment scams.
The SEC will now document Justice Department findings of wrongdoing even during civil settlement of cases. This is a significant change for the SEC, which has classically allowed companies to neither admit nor deny allegations even when wrongdoing was admitted in related criminal cases. While this is a step in the right direction, the truth is that the majority of day-to-day cases handled by the SEC will be unaffected, and defendants who have not been involved in a criminal case will not be held to the same change in language.
In this case, the "neither admit nor deny" language will continue to be used. If you have suffered investment losses and suspect financial fraud, speak with one of our highly experienced investment fraud attorneys. We help investors nationwide recover losses through stockbroker mediation, arbitration, & litigation.