Westlaw Cites BakerHostetler Partners Powers, Carney for Key Analysis on Impact of Supreme Court Decision on SEC Disgorgement Actions

News / June 8, 2017

Partners Marc Powers, national leader of the securities litigation and regulatory enforcement, and hedge fund industry teams, and John Carney, co-leader of the white collar defense and corporate investigations team, are quoted in an article published in the June 8, 2017, issue of Westlaw Journal’s Securities Litigation & Regulation newsletter. The article, “Supreme Court Rules SEC Disgorgement Actions Subject to Limitations Period,” discusses the recent Supreme Court ruling in Kokesh v. Securities and Exchange Commission that disgorgement is a penalty and is therefore subject to a five-year limitations period.

Powers noted the ruling will be “advantageous” for “all proposed SEC defendants, including Wall Street” and explained, “They will be able to sleep at night, not fearing the SEC and forever looking over their shoulders for their questionable conduct in the securities markets.”

Carney said the SEC can continue seeking disgorgement but it must proceed quickly.

“Importantly, the court did not say the SEC cannot seek and secure disgorgement, but merely that they have to do it within the five-year statute of limitations,” he said. “Going forward ‘the need for speed’ in bringing actions will be paramount.”

Read the article.