Tatiana Rodriguez | Bloomberg LawSEC v. Citigroup Global Markets Inc., No. 11-CV-07387 (S.D.N.Y. Filed Oct. 19, 2011) In rejecting the recent consent judgment between the Securities and Exchange Commission (SEC) and Citigroup Global Markets Inc. (Citigroup), Judge Jed S. Rakoff of the U.S. District Court for the Southern District of New York brought to light the issues that arise in granting a regulator's request for injunctive relief based on allegations the defendant neither admits nor denies. Judge Rakoff rejected the settlement agreement, finding both that it was not in the public interest because allegations are an insufficient basis to grant injunctive relief, and that the settlement was not in the investors’ interest. Judge Rakoff has previously rejected or criticized SEC settlements where the defendant neither admits nor denies the allegations.
Review of Consent Judgment
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