The Securities and Exchange Commission's policy of agreeing to settlements with companies that neither admit or nor deny allegations makes sense, says a former head of the Division of Enforcement, Robert Khuzami. "By admitting wrongdoing in the government investigations, which companies might well be prepared to do, they face a great deal of liability on the civil side and, in fact, the admissions may well be tantamount to conceding liability on the civil side," Khuzami said.

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