Regulatory Outlook | 06.23.20
U.S. Supreme Court Sets Limits on SEC's Power to Recover Ill-gotten Gains
The U.S. Supreme Court on Monday placed limits on the ability of the SEC to force defendants to surrender profits obtained through fraud as part of its enforcement of investor-protection laws in federal courts. Justices affirmed the SEC's authority to seek disgorgement, a part of its civil enforcement arsenal aimed at passing on funds acquired in fraudulent schemes to the original investors, but limited the scope of what can be sought via disgorgement to no more than the net profits of the conduct at issue.
Read the full article on Reuters.