About this episode

The episode discusses the Supreme Court's ruling on whether the SEC can seek disgorgement without proving investors suffered financial loss.

Sripetch v. Securities and Exchange Commission | Case No. 25-466 | Docket Link: Here | Argued: April 20, 2026 | Decided: June 4, 2026 Overview: The Supreme Court resolves a circuit split over whether the SEC must prove investors lost money before ordering disgorgement — preserving billions in annual securities enforcement power. Question Presented: Whether the SEC may seek disgorgement without proving investors suffered pecuniary harm. Posture: Ninth Circuit affirmed disgorgement without pecuniary harm; Supreme Court granted certiorari to resolve circuit split. Main Arguments: Sripetch: (1) Disgorgement without pecuniary harm functions as an unlawful penalty, not equitable relief; (2) Congress's 2021 amendments ratified Liu 's disgorgement definition, requiring restoration of funds to actual victims; (3) SEC's reading creates statutory anomalies and lets the agency circumvent jury-trial and procedural safeguards attached to civil penalties. SEC: (1) Disgorgement targets the wrongdoer's gain, not the victim's loss — no loss showing required; (2) Congress deliberately omitted the "for the benefit of investors" language from the 2021 statute, eliminating any pecuniary-harm…

Topics covered

• SEC
• disgorgement
• pecuniary harm
• circuit split
• financial regulation
• Supreme Court

Keywords

• SEC
• disgorgement
• Sripetch
• pecuniary harm
• Supreme Court
• financial regulation
• circuit split
• unjust enrichment

Mentioned in this episode

Organizations: Securities and Exchange Commission

Books & works: Liu

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