How the New SEC Settlement Policy Affects Your D&O Coverage

Risk Management

PUBLISHED ON: April 1, 2012

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This article also appeared in the The National Law Review.

On January 6, 2012, the Securities and Exchange Commission announced a change in a policy that had previously permitted companies and their directors and officers to "neither admit or deny" allegations as part of any SEC settlement, notwithstanding any prior admissions in a criminal investigation or prosecution. The change raises important considerations for D&O liability policyholders.