The Supreme Court has agreed to hear a case that challenges the SEC’s authority to pursue disgorgement in civil enforcement actions.

Key Points:

..The upcoming case will resolve a split of authority on whether the SEC has exceeded its power in pursuing disgorgement in civil enforcement actions.

..In a prior Supreme Court case, Kokesh v. SEC, the Court addressed and classified disgorgement as a penalty for statute-of-limitations purposes, but expressly declined to decide whether the courts have the power to order disgorgement in SEC enforcement cases.

..A final decision against the SEC will likely have tremendous fiscal and practical implications for the SEC and for other executive agencies, including the FTC.