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Supreme Court: SEC Can Recoup Ill-Gotten Profits, with Caveats, Compliance Week

June 22, 2020

Morgan Lewis partner Jeffrey Boujoukos spoke with Compliance Week about the long-awaited US Supreme Court decision in Liu v. SEC. In the piece, he noted the following:

“This decision is by no means a complete victory for the Commission. Many of the restrictions on disgorgement set forth in this decision will have a narrowing effect on the scope of this remedy and, because much of the execution is left to the lower courts, the SEC will be litigating these issues for years to come. The consequences for the Commission’s insider-trading prosecutions, which often seek disgorgement from tippers for the profits of downstream tippees and deposit disgorgement into the Treasury, may be particularly acute.”

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