Nelson Mullins attorneys Scott Sherman, Joshua Lewin, and Demetrius Williams authored an article for Corporate Counsel, “Assessing New Risks After The End Of The SEC's Gag Rule,” analyzing the shift in the SEC’s enforcement framework and resolution strategy due to the rescinding of the “no-deny” gag rule.

“While early commentary has emphasized the First Amendment dimensions of this change, its more consequential impact lies in how it reconfigures the strategic interplay among enforcement, civil litigation, disclosure obligations, and corporate governance,” they explained. “In particular, the rescission transforms settlements from endpoints into continuing narrative events, in which both the SEC and defendants may actively shape public interpretation of the underlying conduct.”

They shared practical takeaways for how to approach SEC enforcement matters.

“In this environment, the question is no longer simply whether to settle, but how to manage the narrative that follows,” they corroborated. “Successfully navigating this shift will require a coordinated approach that integrates enforcement strategy, litigation positioning, disclosure compliance, and reputational considerations into a single, cohesive framework. We invite you to reach out if would like to discuss how these changes may impact your organization or any ongoing or potential SEC matters."

Subscribers can read the full article here.