Congress Clarifies SEC’s Authority to Obtain Disgorgement and Expands the Statute of Limitations on SEC Claims for Equitable Relief

Overriding President Trump’s veto of legislation for the first time, on January 1, 2021 Congress enacted the National Defense Authorization Act for Fiscal Year 2021 (the “Act”). In doing so, Congress adopted a rider to the operative legislative bill—having no connection to the military or national defense—that amends the Securities Exchange Act to grant the Securities and Exchange Commission (“SEC”) relief from adverse rulings in two recent Supreme Court cases. The Act represents a victory for the SEC because it significantly broadens the SEC’s authority to pursue disgorgement of ill-gotten gains arising from violations of the securities laws.

To read the full client alert, “Congress Clarifies SEC’s Authority to Obtain Disgorgement and Expands the Statute of Limitations on SEC Claims for Equitable Relief,” please click here. 

For more details on this topic, click here for a podcast episode featuring George Canellos.