RK&O Client Alert: Liu v. SEC - A Victory for Both Sides

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June 24, 2020

As anticipated, the Supreme Court in Liu v. SEC concluded this week that, properly fashioned, a disgorgement award in an SEC court action is within the district court’s statutory authority to grant “equitable relief,” notwithstanding the high court’s 2017 decision in Kokesh v. SEC that such disgorgement operated as a “penalty” for purposes of the statute of limitations, and that equitable relief historically excludes punitive sanctions. Although the core holding of Liu is a victory for the SEC, the Court’s announcement of limitations on the scope of permissible disgorgement is an important victory for the defense bar.

In this client alert, RK&O attorneys Arthur Greenspan, Rachel Mechanic and Jacob Taber review the Liu v. SEC decision and discuss the three limiting principles that defense counsel need to consider.

Click here to read the client alert.

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RK&O Client Alert: Justices May Find Middle Ground in Disgorgement Dispute - February 28, 2020