Supreme Court

SEC disgorgement claims subject to five-year statute of limitations

JEFFREY F. ROBERTSON AND PETER H. WHITE, SCHULTE ROTH & ZABEL LLP

On June 5, 2017, a unanimous Supreme Court in Kokesh v. SEC1 held that SEC enforcement actions seeking disgorgement must be brought within the five-year statute of limitations imposed by 28 U.S.C. § 2462. Kokesh resolved a split in the Courts of Appeals by concluding that disgorgement in SEC federal court actions is a “penalty,” thus triggering § 2462’s statute of limitations. As a result, we may see the SEC bringing...

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