Heinz ‘No-Admit’ Insider-Trading Accord Draws Scrutiny
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A proposal by federal regulators to settle a lawsuit over suspicious trades in H.J. Heinz Co. without requiring the defendants to admit wrongdoing was questioned by U.S. District Judge Jed Rakoff, who has assailed similar accords in other cases.
The Manhattan judge told U.S. Securities and Exchange Commission lawyers late last year that his “only concern with the proposed settlement was the inclusion” of the “no admit, no deny” language, according to a court filing yesterday. He said regulators could either remove the language, have the defendants admit the allegations or provide him with evidence supporting the lawsuit’s claims.