In an article published by the Hedge Fund Law Report on July 2, Boston partner Benjamin Lajoie examines the U.S. Supreme Court's unanimous decision in Sripetch v. SEC, which held that the SEC may seek disgorgement in securities fraud cases without proving investors suffered pecuniary harm. While the ruling is a significant victory for the SEC, Lajoie explains it is not a sweeping endorsement of the Commission’s disgorgement authority, but rather part of the Supreme Court’s ongoing effort to define the limits of SEC enforcement powers.

The article explores the decision's implications for securities enforcement and discusses why fund managers should consider its impact when assessing enforcement risk, responding to SEC investigations, and making strategic settlement and litigation decisions.

Subscribers can read the full article here.