Rejecting the Tenth Circuit Kokesh decision, the holding that the five-year limitations period applies to SEC disgorgement claims will dramatically affect enforcement actions.

Key Points:

..The Supreme Court decision will have a significant impact on the SEC’s ability to conduct investigations that take many years, because the statute of limitations may eliminate disgorgement claims as the investigation continues.

..Both the SEC and those under investigation will have an additional factor to consider in deciding when and how to use tolling agreements.