BNA Insights: Statute of Limitations for Disgorgement Claims in SEC and CFPB Enforcement Actions

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In a landmark May 26, 2016 decision, the U.S. Court of Appeals for the Eleventh Circuit became the first appellate court to rule that Securities and Exchange Commission (‘‘SEC’’) actions for disgorgement are subject to a statute of limitations. In that case, SEC v. Graham, No. 14-13562 (11th Cir. March 26, 2016), the court held that disgorgement claims, not just civil monetary penalties, are subject to the five-year limitations period of 28 U.S.C. § 2462. This holding, if adopted by other courts, could significantly decrease the financial exposure faced by targets of SEC enforcement actions. In addition, the decision could provide a defense against disgorgement claims in actions brought by the Consumer Financial Protection Bureau (‘‘CFPB’’).

Originally published in Bloomberg BNA's Securities Regulation

& Law Report™ - August 8, 2016.

Please see full publication below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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