Congress Expressly Authorizes SEC Disgorgement and Extends Limitations Periods: Congress Provides the SEC with Legislative Relief from the Supreme Court’s Decisions in Kokesh v. SEC and Liu v. SEC.

Sullivan & Cromwell LLP - January 3, 2021

On January 1, 2021, Congress amended the federal securities laws to expand significantly the SEC’s ability to obtain disgorgement and other remedies, marking a significant legislative response to the Supreme Court’s decisions in Kokesh v. SEC, 137 S. Ct. 1635 (2017), and Liu v. SEC, 140 S. Ct. 1936 (2020), which had scaled back the SEC’s disgorgement authority. This memorandum summarizes the amendments to the Securities Exchange Act of 1934.

Subscribe to our Memos