TBA Law Blog

Posted by: Katharine Heriges on Jun 5, 2017
The U.S. Supreme Court today scaled back the Securities and Exchange Commission’s ability to recover ill-gotten profits from defendants’ misconduct, finding that the SEC’s recovery method known as “disgorgement” is subject to a five-year statute of limitations, Reuters reports. The unanimous ruling sided in favor of investment advisor Charles Kokesh, and signaled a win for Wall Street firms that fought to limit the SEC’s powers. In the opinion, Justice Sonia Sotomayor said that disgorgement counts as a penalty and is subject to the same statute of limitations that already exists for all other penalties.