The ruling supports the SEC’s position that it can use disgorgement to claw back gains tied to violations, reinforcing a key enforcement tool for the U.S. securities regulator.
The U.S. Supreme Court supported the U.S. Securities and Exchange Commission’s position that the agency has broad authority to recover unlawful profits through disgorgement (repayment of ill-gotten gains). The decision reinforces an important enforcement mechanism for the SEC (U.S. securities regulator), allowing it to seek the return of profits tied to violations.