Published: January 12, 2012
Washington – In an amicus brief filed today, Business Roundtable (BRT) urged the Second Circuit Court of Appeals to reject a “novel, and potentially dangerous, approach to reviewing settlement agreements” that was adopted by a lower court in the case of United States Securities and Exchange Commission v. Citigroup Global Markets Inc.
“Business Roundtable member companies have a significant interest in resolving enforcement actions through consent decrees, and the Federal District Court’s decision to reject a negotiated settlement threatens to upend longstanding regulatory enforcement procedures and force businesses to engage in protracted litigation,” said BRT President John Engler.
According to BRT’s brief, the district court’s decision to reject a consent decree on the basis that Citigroup did not admit the allegations in the complaint would pose a serious threat to the long-standing and appropriate practice of settling enforcement actions without admission of fault.
“This case potentially affects nearly every major U.S. business and every federal regulatory agency,” said Engler. “The Federal District Court’s decision, if left to stand, would seriously disrupt the normal course of regulatory enforcement and compliance. We hope the Federal Appeals Court will reverse this unsound decision.”
Business Roundtable (BRT) is an association of chief executive officers of leading U.S. companies with over $6 trillion in annual revenues and more than 14 million employees. BRT member companies comprise nearly a third of the total value of the U.S. stock market and invest more than $150 billion annually in research and development – nearly half of all private U.S. R&D spending. Our companies pay $163 billion in dividends to shareholders and generate an estimated $420 billion in sales for small and medium-sized businesses annually.
BRT companies give nearly $9 billion a year in combined charitable contributions.