For decades the Securities and Exchange Commission has given corporate defendants incentive to resolve enforcement charges by settling those charges without having to admit guilt. That policy could soon be coming to an end.
Amid intensified criticism, pressure is mounting for the SEC to revise its policy and force defendants to own up to their misdeeds or face lengthy trials.
Companies are often reluctant to admit guilt in settling with the SEC because of the amount of baggage that the admission of wrongdoing carries with it. In addition to being the target of shareholder lawsuits, for example, the company also faces ...