Supreme Court: SEC disgorgement does not require proof of investor loss

In Sripetch v. SEC, a unanimous Court held that the SEC does not have to show that investors suffered a financial loss before a court orders a defendant to disgorge the proceeds of a fraud. The decision affirmed the Ninth Circuit and resolved a split with the Second Circuit, which had required that showing.

Why it matters. Disgorgement is one of the ways money is returned to harmed investors, and the ruling removes a defense argument against it.