trending Market Intelligence /marketintelligence/en/news-insights/trending/8-4IoxaapS_Jpaiu001KXA2 content esgSubNav
In This List

Supreme Court rules against SEC in disgorgement case

Case Study

Broad Environmental Data Guides an Insurer’s Journey to Net Zero

Blog

Broadcast deal market recap, Q2'22

Blog

Japan M&A By the Numbers: Q1 2022

Podcast

Next in Tech | Episode 77: Language in Tech


Supreme Court rules against SEC in disgorgement case

The U.S. Supreme Court ruled that the Security and Exchange Commission's disgorgement regulatory remedy is subject to a five-year statute of limitations.

In a decision released June 5, Supreme Justice Sonia Sotomayor wrote that, "Because disgorgement orders 'go beyond compensation, are intended to punish, and label defendants wrongdoers' as a consequence of violating public laws ... they represent a penalty and thus fall within the 5-year statute of limitations."

The unanimous ruling favored investment adviser Charles Kokesh, who was ordered by a lower court to pay $2.4 million in penalties and $34.9 million in disgorgement, after an SEC suit accused him of violating various securities laws by concealing the misappropriation of $34.9 million from four business-development companies from 1995 to 2009. Kokesh appealed the decision to the Supreme Court.