PUBLISHED ON: February 2, 2012
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On January 6, 2012, the Securities and Exchange Commission announced a change in a policy which had previously permitted companies and their directors and officers to "neither admit or deny" allegations as part of any SEC settlement, notwithstanding any prior admissions in a criminal investigation or prosecution. The SEC’s change in policy highlights some important considerations for corporate policyholders with respect to their D&O liability policies and admissions made in connection with settlements with the government.