Sometimes a judge just needs to say something for the record. In SEC v. Moraes, Judge Ronnie Abrams of the Southern District of New York approved a standard consent agreement concluding an SEC enforcement action. But Judge Abrams refused to do so without expressing her disapproval of the SEC’s long-standing practice of demanding that all settling parties agree to never deny or even “create the impression” that the SEC’s allegations are not true upon pain of reopening the investigation.
It’s an unusual demand to be sure. Judge Abrams objects to the practice on First Amendment grounds. The Commission thinks it’s important to stop people from telling the market that their case was all one big misunderstanding.
In any event, Adam Liptak of the New York Times caught a fun footnote after Judge Abrams cited the failed cert petition in SEC v. Romeril challenging the practice:
In the interest of full transparency, the Court notes that Romeril was represented on his petition for certiorari by Floyd Abrams, my father. Rare though it may be, occasionally we must acknowledge when our parents happen to get it right.
Check out the full opinion here.
Joe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.