Supreme Court to Review SEC Power to Recoup Illegal Gains [View all]
Source: Yahoo! Finance/Bloomberg
Fri, January 9, 2026 at 4:49 PM EST 3 min read
(Bloomberg) -- The US Supreme Court will consider how much power the Securities and Exchange Commission has to recover illegal profits in a case that could blunt one of the agency’s most potent enforcement tools.
The justices said Friday they will decide whether the SEC must show identifiable investor harm in order to win “disgorgement” from people and firms found to have engaged in securities fraud.
The case concerns what has traditionally been one of the Wall Street watchdog’s favorite legal remedies. The commission secured orders for more than $6 billion in disgorgement and related interest in fiscal 2024, almost three-quarters of the commission’s total financial penalties.
The number dropped to a record low of $108 million in fiscal 2025, according to Cornerstone Research. Paul Atkins, the SEC chairman appointed last year by President Donald Trump, has long spoken out against hefty corporate penalties. The agency has not published its own tally of 2025 enforcement actions.
Read more: https://finance.yahoo.com/news/supreme-court-review-sec-power-214900448.html
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