Foley & Lardner LLP partner Jim Lundy was quoted in the Law360 article, “Justices Signal Openness To Future SEC Disgorgement Cases,” on the U.S. Supreme Court’s ruling affirming the SEC’s ability to obtain disgorgement.
Commenting on unresolved aspects of the case, Lundy stated, “We may see litigation in the future that leads up to appellate court, and perhaps even eventually another Supreme Court ruling.”
Lundy observed that the Court’s remarks “leave the SEC open to scrutiny about how far it went in locating potential victims.” He added, “I think that the SEC staff would be well within their rights, when appropriate, to make a determination of infeasibility and consider disgorgement being paid to the Treasury.”
However, Lundy emphasized SEC staff would likely want to have “a very detailed and supportable analysis of what constitutes infeasibility in order to survive a challenge.”
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