How the SEC May Circumvent the Five-Year Statute of Limitations on Disgorgement Under Kokesh v. SEC

The U.S. Supreme Court’s recent decision in Kokesh v. SEC that the disgorgement remedy available to the SEC is restricted by a five-year statute of limitations was widely seen as a victory for entities that are subject to the enforcement arm of the SEC. However, in a guest article, Justin Shur, a partner at MoloLamken, along with associate Eric Nitz, argue that it is unlikely that the Commission’s Division of Enforcement will take the Kokesh decision lying down. Rather, the Commission is likely to adopt strategies to mitigate the impact of the Court’s decision on its ability to seek penalties and disgorgement from companies. Shur and Nitz outline those potential strategies and their impact on companies. See “SEC Enforcement After Kokesh” (Jun. 21, 2017).

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