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Supreme Court Unanimously Holds SEC Disgorgement Is Subject to Five-Year Limitations Period

We are attaching an article about a major Supreme Court decision that imposes a five-year statute of limitations on disgorgement actions brought by the SEC.  Justice Sotomayor, writing for a unanimous court, held that disgorgement is a financial penalty, not a form of restitution to victims.  The SEC now must either more quickly bring its charges or persuade targets of its investigation to agree to a tolling agreement.

-By Jackie Bonneau and Harry Sandick