Corporate Accountability

RELEASE: Justices Lean Toward Recognizing Courts’ Power To Order Disgorgement

“The Justices barely discussed whether courts have disgorgement authority at all. Rather, the argument focused on whether the Court should impose any reasonable limits on the amount of disgorgement that can be imposed.” — CAC Appellate Counsel Ashwin Phatak

WASHINGTON – Following oral argument at the Supreme Court this morning in Liu v. SEC, Constitutional Accountability Center Appellate Counsel Ashwin Phatak, present for today’s proceedings, issued the following reaction:

After this morning’s argument, it seems that the Justices will recognize, as they should, that district courts have the authority to order violators of the nation’s securities laws to turn over their ill-gotten gains. As even counsel for Liu acknowledged during today’s argument, multiple laws are premised on the existence of disgorgement authority, and those provisions would make no sense if courts could not order disgorgement. Indeed, it was notable that the Justices barely discussed whether courts have disgorgement authority at all. Rather, the argument focused on whether the Court should impose any reasonable limits on the amount of disgorgement that can be imposed.

#

Resources:

CAC case page in Liu v. SEC: https://www.theusconstitution.org/litigation/liu-v-sec/

##

Constitutional Accountability Center is a think tank, public interest law firm, and action center dedicated to fulfilling the progressive promise of the Constitution’s text and history. Visit CAC’s website at www.theusconstitution.org.

###

More from Corporate Accountability

Corporate Accountability
March 3, 2020

RELEASE: Gutting CFPB Independence Would Be At Odds with Congress’s Plan

“So long as the relevant removal restriction allows the President to take care that the...
By: Brianne J. Gorod
Corporate Accountability
January 22, 2020

Congress Weighs In On SEC Disgorgement Power Challenge

Law360 (behind paywall)
(Article behind paywall.)
By: Ashwin Phatak, By Jack Queen
Corporate Accountability
U.S. Supreme Court

Liu v. SEC

In Liu v. SEC, the Supreme Court is considering whether district courts have the authority to order disgorgement for violations of the nation’s securities laws.
Corporate Accountability
U.S. Court of Appeals for the Second Circuit

XY Planning Network, LLC v. SEC

In XY Planning Network, LLC v. SEC, the United States Court of Appeals for the Second Circuit is considering whether the Securities and Exchange Commission’s “Best Interest Rule” violates the Dodd-Frank Wall Street Reform and...
Corporate Accountability
October 22, 2019

Supreme Court Will Consider Whether Consumer Bureau’s Structure Is Constitutional

Government Executive
California-based law firm is arguing the bureau’s director has been given too much authority, violating...
Corporate Accountability
U.S. Supreme Court

Seila Law LLC v. Consumer Financial Protection Bureau

In Seila Law LLC v. Consumer Financial Protection Bureau, the Supreme Court is considering a constitutional challenge to the leadership structure of the Consumer Financial Protection Bureau (CFPB). Since its creation, the CFPB has played...