High Court's SEC Enforcement Ruling Has Tax Consequences

Law360 (June 26, 2020, 7:04 PM EDT) -- The U.S. Supreme Court recently delivered its decision in Liu v. U.S. Securities and Exchange Commission,[1] an SEC enforcement case that has important tax implications for companies facing potential disgorgement of their net profits in actions brought by government agencies.

Disgorgement may arise in an array of SEC enforcement contexts, including securities fraud, insider trading, foreign bribery and other areas. 

In Liu, the SEC argued, consistent with its long-standing position, that a disgorgement award that does not exceed a wrongdoer's net profits is not utilized for punitive purposes, and is thus a form of equitable relief that is permissible under Section78u(d)(5)....

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!