News | 11.20.19
House Passes Bill to Reverse Supreme Court Decision on SEC Disgorgement
Bipartisan legislation giving the SEC more tools and time to seek restitution for investors harmed by securities fraud was passed by the House on Monday. The measure would counteract a June 2017 Supreme Court ruling that put new limits on the practice of disgorgement. In the case, the justices unanimously said that because disgorgements are penalties, the SEC is bound by a five-year statute of limitations when seeking them. The House bill would allow for a 14-year statute of limitations and prevent disgorgement from being defined as "a civil fine, penalty, or forfeiture" to avoid the shorter time frame. In March, similar bipartisan legislation was introduced in the Senate, but no further action has been scheduled. The Supreme Court is scheduled to revisit the issue in 2020.
Read the full article on Pensions & Investments