James Lundy Assesses Supreme Court Decision in SEC Disgorgement Case
Foley & Lardner LLP partner James Lundy assessed the U.S. Supreme Court’s ruling in Sripetch v. SEC in the Law360 article, “Justices Signal Openness To Future SEC Disgorgement Cases.”
Commenting on unresolved aspects of the case, which examined the SEC’s disgorgement authority, Lundy said, “We may see litigation in the future that leads up to appellate court, and perhaps even eventually another Supreme Court ruling.”
He observed that the Court’s remarks “leave the SEC open to scrutiny about how far it went in locating potential victims,” adding, “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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