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Firm Memoranda

United States Court of Appeals for the Fifth Circuit Becomes First Circuit Court to Consider Post-Liu Disgorgement

Date: 01/12/22

In SEC v. Blackburn, 15 F.4th 676 (5th Cir. Oct. 12, 2021), the United States Court of Appeals for the Fifth Circuit became the first circuit to consider whether a disgorgement order for violations of the securities laws met the “awarded for victims” requirement set forth by the Supreme Court of the United States in Liu v. SEC, 140 S. Ct. 1936 (2020). The Fifth Circuit affirmed the district court order awarding disgorgement and held that the award satisfied the requirements of Liu because the order required the Securities and Exchange Commission (“SEC”) to disburse funds “to already-identified victims with court supervision to ensure compliance with that edict.”

CGR Memo - United States Court of Appeals for the Fifth Circuit Becomes First Circuit Court to Consider Post-Liu Disgorgement.pdf (pdf | 153.13 KB )