Plain-English summary
Court to decide limits on SEC's ability to seek disgorgement in civil enforcement
Ongkaruck Sripetch v. SEC asks whether the SEC can obtain disgorgement beyond a wrongdoer’s net profits under Liu v. SEC and how lower courts should calculate and enforce equitable relief. The case was argued April 20, 2026, and raises questions about remedies available in SEC civil enforcement actions.
Why this matters
The decision will shape how the SEC can use disgorgement to return ill-gotten gains to investors and punish wrongdoing. It affects the size of monetary remedies the SEC can obtain and sets rules courts must follow to protect defendants’ rights and ensure equitable remedies stay within constitutional and historical limits.
Who may feel it
- Public companies, brokers, and fund managers facing SEC enforcement actions
- Investors and consumers seeking recovery of losses
- Federal courts that hear SEC enforcement suits
- Defense counsel and regulators who litigate remedies in securities cases
Key questions
- Does Liu limit SEC disgorgement to a restrained equitable remedy measured by a wrongdoer’s net profits, and how must courts calculate those net profits?
- Which deductions (e.g., legitimate business expenses, amounts paid to innocent investors, third-party reimbursements) must be subtracted when calculating disgorgement?