Sripetch v. SEC · ¶23
The Commission sees things differently. It concedes that under § 78u(d)(7), as under § 78u(d)(5), the SEC may seek disgorgement of only (1) a defendant's net profts that were (2) causally connected to his unlawful conduct. See Brief for Respondent 33–35; Liu, 591 U. S., at 83–84, 90–92; Third Restatement § 51, Comment f. After all, Congress's new statutory language authorizing disgorgement permits the Commission to seek no more than the “unjust enrichment” a defendant “received . . . as a result of” his securities-law violations. § 78u(d)(3)(A)(ii). At the same time, the SEC claims that § 78u(d)(7) differs from § 78u(d)(5) in one important respect. While we held in Liu that disgorgement under § 78u(d)(5) must be “awarded for victims” of the defendant's securities-law violations, 591 U. S., at 79, the SEC argues this constraint does not apply when it seeks disgorgement under the new…Read in context ›
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