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## Overview The US Supreme Court has validated the SEC's use of disgorgement as a remedy in securities enforcement actions (SCOTUSblog, June 2026). ## Key Details - Justices ruled to uphold the SEC's authority to use disgorgement — requiring defendants to give up ill-gotten gains — as an enforcement tool in securities cases (SCOTUSblog, June 2026). ## Why It Matters Disgorgement has been a central and frequently litigated tool in SEC enforcement, with prior Supreme Court decisions (notably *Liu v. SEC* in 2020) narrowing but not eliminating its use. This ruling reaffirms and likely expands the SEC's enforcement toolkit at a time of significant regulatory rollback elsewhere (e.g., pattern day trader deregulation, gag rule elimination). For securities attorneys, compliance officers, and enforcement defense practitioners, this decision has direct and recurring practical implications for case strategy, settlement negotiations, and potential monetary exposure in SEC actions. This is likely to be cited repeatedly in future SEC enforcement litigation and commentary. ## Related Entities - SEC Enforcement Director Transition (2026) - SEC Pattern Day Trader Rule Deregulation (2026) - SEC 'Gag Rule' Elimination (2026) ## Watch For - Lower court application of the ruling in pending SEC cases - Congressional or SEC rulemaking responses - Industry and defense bar reaction