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US Supreme Court to consider SEC's 'disgorgement' power
The justices are weighing a split over whether the SEC must prove investors were financially harmed before it can recover illegal profits.
- On Monday, the U.S. Supreme Court began weighing the Securities and Exchange Commission's authority to use "disgorgement" to recover illegal profits from alleged wrongdoers in the case Sripetch v. SEC.
- The Supreme Court previously limited the SEC's disgorgement authority, ruling in 2020 that awards are permissible only if capped at a wrongdoer's net profits and "awarded for victims."
- Sripetch contends the SEC must demonstrate "pecuniary" harm to victims to justify disgorgement, while Justice Department lawyers argue the remedy is designed to strip ill-gotten profits from "wrongdoers, not to compensate victims for their losses."
- A ruling against the SEC could undermine its broader enforcement regime, potentially affecting the agency's pending litigation against Elon Musk over alleged Twitter stake disclosure violations.
- The Supreme Court is expected to rule by July in Sripetch v. SEC, aiming to resolve a split among federal appellate courts on whether the agency must prove victim harm before pursuing disgorgement.
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12 Articles
12 Articles
LIVE NOW: Supreme Court Hears Arguments in Sripetch v. SEC on Disgorgement Authority
The Supreme Court hears arguments in Sripetch v. SEC (25-466) to consider whether the Securities and Exchange Commission can seek disgorgement without proving investor harm at 10 a.m. ET on April 20. ...
·New York, United States
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Supreme Court Has Little Interest in New Curbs on SEC
Bloomberg: “The U.S. Supreme Court expressed little enthusiasm for curbing one of the Securities and Exchange Commission’s most important enforcement tools, as the justices weighed restricting the financial watchdog for the fourth time in a decade.”
·New York, United States
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Coverage Details
Total News Sources12
Leaning Left1Leaning Right2Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
14%
C 57%
R 29%
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