Oral Argument: Sripetch v. SEC

About this episode

The episode discusses the Supreme Court case Sripetch v. SEC, focusing on the legality of SEC disgorgement without proving investor harm.

Sripetch v. Securities and Exchange Commission | Case No. 25-466 | Docket Link: Here Oral Advocates: Petitioners (Sripetch): Daniel L. Geyser of Haynes and Boone LLP Respondents (SEC): Malcolm L. Stewart of the Department of Justice Question Presented: Whether the SEC may seek disgorgement without proving investors suffered pecuniary harm. Overview: Federal securities enforcement showdown asks whether the SEC must prove actual investor money losses before courts order fraudsters to surrender profits — reshaping a $6.1 billion annual enforcement tool. Posture: Ninth Circuit affirmed disgorgement without pecuniary harm; Second Circuit requires it; Supreme Court granted cert January 9, 2026. Main Arguments: Sripetch (Petitioner): (1) Disgorgement without pecuniary harm functions as an unlawful penalty, not equitable relief; (2) Congress's 2021 amendments ratified Liu 's definition of disgorgement, which requires restoring funds to actual victims; (3) Allowing victimless disgorgement creates incoherent statutory anomalies and lets the SEC circumvent procedural safeguards attached to civil penalties. SEC (Respondent): (1) Disgorgement strips wrongdoers of ill-gotten gains rather than…

People in this episode

Guests: Daniel L. Geyser, Malcolm L. Stewart

Topics covered

• SEC Disgorgement
• Investor Protection
• Securities Law
• Legal Arguments
• Federal Enforcement

Keywords

• disgorgement
• SEC
• pecuniary harm
• federal securities
• investor losses
• equitable relief
• unjust enrichment

Mentioned in this episode

Organizations: Securities and Exchange Commission, Department of Justice, Haynes and Boone LLP

Books & works: Liu

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