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Firm Memoranda

Supreme Court Holds That Five-Year Statute of Limitations Applies to SEC Disgorgement Actions

Date: 06/12/17

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.  

CGR Memo - Supreme Court Holds That Five-Year Statute of Limitations Applies to SEC Disgorgement Actions.pdf (pdf | 225.94 KB )