Davis Polk partner Rob Cohen was quoted in Ignites discussing the SEC’s disgorgement power and a recent Supreme Court ruling in Sripetch v. SEC, which allows the SEC to seek disgorgement of ill-gotten gains in enforcement actions without proving that investors suffered actual financial losses.

This ruling is the latest in a series of Supreme Court decisions shaping the SEC’s disgorgement authority.

“In [Liu v. SEC], the Supreme Court said the SEC does have authority and imposed some limitations. And then in Sripetch the court clarified one of those limitations …. clarified it in a way that’s favorable to the SEC,” Rob said.

Rob also noted, “Where pecuniary loss is harder to quantify, such as in compliance violations or misrepresentation, the SEC would typically seek penalties rather than disgorgement anyway.”

“Supreme Court Backs SEC’s Disgorgement Power,” Ignites (June 8, 2026) (subscription required)

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