King & Spalding Discusses Potential Effects of SEC Disgorgement As a Penalty

In the week since the Supreme Court’s unanimous decision in Kokesh v. SEC,[1] which rejected the Securities and Exchange Commission’s longstanding position that disgorgement was an equitable remedy not subject to the five-year statute of limitations in 28 U.S.C. § 2462, many have commented about the increased need for the SEC’s enforcement attorneys to complete their investigations quickly and the frustration  that hidden ill-gotten gains would never be recovered due to the five-year limit.  These are important and valid ramifications, and we include them in this article.

But the Kokesh decision raises other potential consequences that have not … Read more