Fort Lauderdale, FL SEC defense attorney David R. Chase talks about helping clients decide whether to settle or fight an SEC Investigation. He describes how the decision to resolve and settle an SEC investigation or proceed to court and fight the case depends on the facts, the client’s financial resources, and, in many instances, what the client wants to do from a personal and life perspective. He notes that there are situations where a case may be legally defensible, but a client may understandably prefer to resolve the matter and move forward, which he considers a perfectly reasonable decision. He emphasizes that fighting the government can be formidable because the SEC has substantial resources, and because every SEC case that is filed becomes public, meaning a client’s name and the allegations will be exposed regardless of whether the client ultimately wins or loses.

He points out that, in many cases, the real victories occur during the investigative stage, before the SEC files a public enforcement action. He describes his role as SEC investigation defense counsel as working to ensure that his client never becomes the subject of a headline and that the public never learns that the investigation occurred. However, if the SEC is determined to bring charges, he evaluates whether the facts suggest that the case is unlikely to fare better in court and whether the settlement terms are more favorable than the outcome the defense reasonably expects to achieve through litigation; when those circumstances exist, he believes resolving the matter can be the better course.

He also notes that there are situations in which the SEC takes an overly aggressive position and offers settlement terms that are essentially as unfavorable as the client’s worst-case outcome at trial. In those circumstances, he points out that the decision to litigate becomes much more straightforward because there may be relatively little additional downside to taking the case to court.