In a decision issued late last month, the U.S. Court of Appeals for the Second Circuit provided new guidance on the rules governing the U.S. Securities and Exchange Commission's ability to seek the remedy of disgorgement in enforcement actions.

The new guidance continues the process of resolving uncertainty left by the U.S. Supreme Court's 2020 decision in Liu v. SEC, and subsequent congressional legislation amending the Securities and Exchange Act, to expressly authorize the SEC to pursue disgorgement in civil enforcement actions.

Originally published by Law360 - July 20.2023.