Sripetch v. SEC · ¶2
Held: A showing of pecuniary loss to investors is not required before the SEC may obtain a disgorgement award. Pp. 562–569. (a) The Court's analysis begins with two statutory provisions, 15 U. S. C. §§ 78u(d)(5) and 78u(d)(7). Section 78u(d)(5) allows the SEC to obtain “any equitable relief that may be appropriate or necessary for the benefit of investors.” Liu held this provision permits a court to order disgorgement so long as the remedy adheres to traditional equitable principles. 591 U. S., at 85. After Liu, Congress adopted § 78u(d)(7), which expressly allows the SEC to seek disgorgement in enforcement proceedings. The Court need not decide whether or how § 78u(d)(7) affects the scope of the SEC's disgorgement powers. Even assuming that disgorgement under § 78u(d)(7) remains an equitable remedy that must comply with traditional equitable rules, a showing of pecuniary loss to…Read in context ›
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