Commentary: Disgorgement Considerations for Pension and Other Funds after Liu vs. SEC

Kelley Howes and Haima Marlier authored an article for Pensions & Investments covering the Supreme Court’s decision in Liu v. Securities and Exchange Commission to preserve the SEC’s ability to collect disgorgement to deprive wrongdoers of the “ill-gotten gains” resulting from illegal conduct.

“The Supreme Court’s decision makes it clear that disgorgement that does not exceed a wrongdoer’s net profits and that is awarded for the benefit of victims of the wrongdoing constitutes equitable relief,” the authors wrote. “Left unresolved, however, is how SEC disgorgement might be structured to be for the ‘benefit of investors’ if it is not structured to be returned to individual victims of the wrongdoing.”

Read the full article.