Supreme Court Holds That Five-Year Statute of Limitations Applies to SEC Disgorgement Actions
June 12, 2017
On June 5, 2017, the Supreme Court of the United States unanimously held in Kokesh v. SEC that disgorgement collected by the Securities and Exchange Commission (SEC) is a "penalty" subject to the five-year statute of limitations on civil penalties under 28 U.S.C. § 2462.¹ The decision resolves a circuit split over whether disgorgement is a "penalty or forfeiture" within the meaning of § 2462.
