Daily Journal (California)
Securities Litigation and Regulatory Enforcement Practice Group chair Jim Kramer recently spoke with the Daily Journal about a new SEC policy that would require clients to concede wrongdoing as a condition of settlement.
"The understanding is the company will pay legal fees along the way, but if it turns out you were doing something wrong, you have to give that back. Any fees or any dollars that were advanced to you could be recouped by the company if it turns out that because of the admission you were not entitled to indemnification," said Kramer.
[Kramer] and others predict [also] fewer of those cases will settle because of the severe consequences of admitting wrongdoing.
"It will be harder to settle those cases because the outcome of the settlement could be just as devastating to the individual or company as trying the case and losing," Kramer said.