In an article for The Investment Lawyer, Theresa Titolo, Lorraine Echavarria, Matthew Martens, Lori Martin, Elizabeth Mitchell, Jaclyn Moyer, Nicole Rabner and Matthew Beville analyze recent congressional amendments to the Securities Exchange Act of 1934, which represent a change of fortune for the SEC and its enforcement program.
Excerpt: On December 29, 2020, Congress amended Section 21(d) of the Securities Exchange Act of 1934 to codify and expand the power of the Securities and Exchange Commission (SEC) to obtain disgorgement in civil actions. The amendments are tucked within the 1,400 page National Defense Authorization Act and are a direct response to the Supreme Court’s recent decisions in Kokesh v. SEC and Liu v. SEC curtailing the SEC’s ability to obtain disgorgement in federal actions. The recent amendments double the time period for which the SEC may obtain disgorgement in cases involving fraud and could expand the SEC’s authority to obtain disgorgement in other important ways.
