Alerts6.24.20
U.S. Supreme Court Confirms SEC’s Right to Seek Disgorgement Under Securities Exchange Act
Highlights
The U.S. Supreme Court held that an SEC disgorgement award that does not exceed a wrongdoer’s “net profits” is permissible equitable relief under Section 21(d)(5) of the Exchange Act
The Court did not, however, decide what type of expenses should be excluded from a calculation of a wrongdoer’s “net profits”
The Court also did not provide further guidance on the appropriate statute of limitations applicable to other types of relief in SEC enforcement actions
On June 22, 2020, the U.S. Supreme Court confirmed that the U.S. Securities and Exchange Commission (SEC) may seek disgorgement in civil enforcement actions brought in federal district court.
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