Supreme Court rules SEC can recoup money in fraud cases
Legal Outlook
The Supreme Court on Monday preserved an important tool used by securities regulators to recoup ill-gotten gains in fraud cases.
By an 8-1 vote, the justices ruled that the Securities and Exchange Commission can seek to recover the money through a process called disgorgement. Last year, the SEC obtained $3.2 billion in repayment of profits from people who have been found to violate securities law.
“The Court holds today that a disgorgement award that does not exceed a wrongdoer’s net profits and is awarded for victims is equitable relief permissible" under federal law, Justice Sonia Sotomayor wrote for the court.
Justice Clarence Thomas dissented. The Supreme Court in 2017 unanimously limited the SEC’s ability to go after profits where alleged fraud has been going on for years before authorities file charges. That case left open the question the high court answered Monday, that courts have the authority to order disgorgement of profits. The SEC has continued to aggressively pursue defendants’ profits in fraud cases.
Related listings
-
Black Lives Matter rallies start in Australia amid court ban
Legal Outlook 06/04/2020The first of several Black Lives Matter protests across Australia on Saturday got underway against a backdrop of possible clashes between demonstrators and police in Sydney, after a court sided with police that the gathering posed too much risk for s...
-
Italy court rules Uber food delivery riders were exploited
Legal Outlook 05/31/2020A court in Milan has ordered the appointment of a judicial administrator to oversee Uber Italy for one year after determining the company’s food delivery service exploited workers, according to Italian news reports.The decision on Friday came a...
-
Georgia high court election cancellation headed for appeal
Legal Outlook 03/17/2020A would-be candidate for a seat on Georgia's highest court on Wednesday asked the state's lower appeals court to step in after a judge this week said the governor had the right to fill the position even though a judge who's resigning won't leave unti...