ABSTRACT
The disgorgement of ‘ill-gotten gains’ is a significant mechanism for enforcing the securities laws. By compelling a violator of the securities laws to forfeit their illegal proceeds, disgorgement serves as a strong deterrent for securities fraud and an important method by which investors are compensated for unjust losses in the market – and today accounts for the recovery of billions of dollars annually. Despite its importance, commentators in recent years began to call into question the availability of the disgorgement remedy for the SEC. The SEC pursues disgorgement under the agency’s grant for seeking equitable relief for the benefit of investors; however, courts have arguably applied disgorgement in a manner that renders it a penalty – and thus beyond the scope of SEC enforcement …
Cameron K Hood, Finding the Boundaries of Equitable Disgorgement 75 Vanderbilt Law Review 1307 (2022).
First posted 2022-06-20 07:00:19
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