Supreme Court To Review SEC’s Right To Seek Disgorgement
WASHINGTON – The Supreme Court agreed Friday to hear a case challenging the U.S. Securities and Exchange Commission’s authority to seek disgorgement in fraud cases.
Last year federal regulators recouped $2.5 billion in ill-gotten proceeds from securities fraud.
But on Friday the justices said they will hear an appeal contending that the SEC lacks the power to seek repayment, or disgorgement, of profits from people who have been found to violate securities law.
The appeal comes from two people who were ordered to pay $27 million after a federal court found they engaged in a fraudulent scheme to lure Chinese investors to back a cancer center in southern California.
As is their custom, the justices did not explain their rationale for taking up the case. But at least four justices have selected the case as being of such importance that the Supreme Court must resolve the legal issues.
The justices grant review in approximately 80 of the 7,000 to 8,000 petitions filed with the court each term.
Arguments will take place in late winter or early spring.
In The News
WASHINGTON - The U.S. Supreme Court on Monday rejected an effort by former President Donald Trump to shield his income tax records from N.Y. prosecutors. The court’s action is the apparent culmination of a lengthy legal battle that had already reached the high court once before.... Read More
WASHINGTON - The White House on Wednesday informed the Supreme Court it believes the Affordable Care Act should be upheld, reversing the position taken by the Trump Administration. The justices heard oral arguments in November in multiple cases involving a group of Republican-led states attempting to... Read More
WASHINGTON - The Supreme Court on Monday dismissed a pair of emoluments lawsuits against former President Donald Trump, ruling the cases are moot now that he's left office. The lawsuits were filed by the attorneys general for Maryland and Washington, D.C., and the government watchdog, Citizens... Read More
WASHINGTON - The U.S. Supreme Court lifted a nationwide injunction Tuesday that had prevented the federal government from enforcing a rule that required women to see a health care professional in person before she'd be given access to a so-called abortion pill. The Food and Drug... Read More
WASHINGTON - The Supreme Court on Friday dismissed a challenge to President Donald Trump's plan to exclude people living in the country illegally from the population count as premature. Trump's insistence that illegal immigrants be excluded from the count could profoundly impact the number of seats... Read More
WASHINGTON — The Supreme Court agreed Wednesday to decide whether major colleges and universities are violating federal antitrust laws by refusing to pay the football and basketball players who bring in hundreds of millions of dollars to their campuses. The National Collegiate Athletic Association and several... Read More