News

Teresa Goody Guillén, Kevin Edgar Comment on Potential for Stronger Securities Disgorgement Regulations

News / December 21, 2020

Partner Teresa Goody Guillén and Counsel Kevin Edgar are quoted in an article published Dec. 21, 2020, by Law360. The article, “Annual Defense Bill Extends SEC’s Disgorgement Shot Clock,” reports on how the annual defense bill contains amendments that would strengthen the government’s ability to seek disgorgement for security law violations.

Guillén said that if the bill passes, the SEC will likely demand “significantly higher amounts in settlements, administrative proceedings and federal court actions” as a result of the amendments. “Ripple effects are also anticipated, such as more aggressive litigation given the higher stakes, and a heightened focus on securing larger Fair Funds, which the SEC administers to recompense injured investors,” she said.

Edgar told the publication, “While not law yet, the amendments to the securities laws in response to the Kokesh decision are going to be game-changing, as the SEC will now have more time to seek disgorgement of ill-gotten gains after the alleged wrongdoing.”

Read the article (registration required).