In an article for Bloomberg Law, litigation & enforcement partner Amy Jane Longo discussed the differing rules and requirements mandated by US appeals courts on what the SEC needs to seek disgorgement. The 2020 US Supreme Court decision, Liu v. SEC, said the SEC could seek disgorgement but that it must be “awarded for victims.” A subsequent Second Circuit ruling defined “victims” as people who “suffered pecuniary harm.”
“The idea that you have to harm, you have to be able to find the people who were harmed, it doesn’t fit in every kind of violation that the SEC pursues,” said Amy.
As to how the SEC illicit matches profits to investor losses Amy added, “I think we’re really still at the beginning of defining that.”
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