162:(SEC) that disgorgement in the case was remedial but held that disgorgement payments to the SEC in the case were penalties. The decision raised the questions of whether the SEC's power to order disgorgement derives only from statute, which would make congressional action necessary for the SEC to pursue disgorgement orders in federal court, and of whether the amounts awarded should be limited to actual profits gained. After
211:. The December 2017 tax reform law provided that to be deductible, such payments must now be identified in the relevant court order or settlement agreement as serving one of a number of specific purposes, and the appropriate government official must report to the IRS the total amount of the payment and the amount of the payment that constitutes
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with the principles governing equity jurisdiction, not to inflict punishment but to prevent an unjust enrichment by allowing injured complainants to claim "that which, ex aequo et bono, is theirs, and nothing beyond this."... Statutory provision for the recovery of profits in patent cases was enacted in 1870.
200:. The purpose of such a remedy, as in securities cases, is "to deprive the wrongdoer of his or her ill-gotten gains and to deter violations of the law." However, in such cases, the court may order disgorgement only up to "the amount with interest by which a defendant profited from his or her wrongdoing."
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Prior to the
Copyright Act of 1909, there had been no statutory provision for the recovery of profits, but that recovery had been allowed in equity both in copyright and patent cases as appropriate equitable relief incident to a decree for an injunction.... That relief had been given in accordance
133:, by itself, does not correct the consequences of past activities. This remedy may also be imposed if the court believes that a defendant should not profit from his or her wrong, but equitable considerations indicate that an injunction should not be granted.
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information return setting out any amount paid (over $ 600) in a suit or agreement to or at the direction of the government in relation to the violation of any law, and it must set forth any amount that is restitution or remediation.
183:(591 U.S. ___ (2020)), the US Supreme Court affirmed that disgorgement awards could be issued as equitable remedies by the SEC but could not exceed the wrongdoer's net profits, as under
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Although not labelled "disgorgement," recovery of profits from the wrongful use of a patent or copyright belonging to another person or entity has a long history in US law. The
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designed to deter future violations of the securities laws and to deprive defendants of the proceeds of their wrongful conduct. Indeed, in the exercise of its
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is the act of giving up something on demand or by legal compulsion, for example giving up profits that were obtained illegally.
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or the amount paid to come into compliance with law. The new law adds
Section 6050X, which requires the government to file an
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to seize illegally obtained profits. When a private party sues for net profits, this is instead ordinarily known as
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Disgorgement payments to the SEC have for decades been considered completely equitable and compensatory and thus
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345:"Supreme Court Decision Forces Resolution of SEC-IRS Conflict on Disgorgement" – Lexology
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so agencies cannot disgorge more than the net profits that resulted from the wrongdoing.
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Jones Day | "New Tax Bill Will
Rewrite Rules for Deducting Disgorgement Payments to SEC"
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68:(2020) that disgorgement is simply another term for restitution, and is subject to
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335:(2d ed.) Securities Regulation—Federal, § 1616 (footnotes omitted).
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context, disgorgement is not a penalty but an equitable remedy.
385:"Supreme Court Limits S.E.C.'s Power to Recoup Ill-Gotten Gains"
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356:"Chronicle of Disgorgement's Death Foretold: Kokesh v. SEC"
316:(2d ed.) Securities Regulation—Federal, § 1308 (citing 15
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This article is about the legal term. For other uses, see
47:, disgorgement is often a civil remedy imposed by some
125:may order disgorgement of profits acquired through
196:Disgorgement is a remedy for violations of the UA
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62:Indeed, the U.S. Supreme Court has noted in
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143:Sheldon v. Metro-Goldwyn Pictures Corp.
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72:limitations. Most notably, equity
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435:"Tax Reform Taxation Settlements"
329:Francis C. Amendola et al., 69A
310:Francis C. Amendola et al., 69A
160:Security and Exchange Commission
98:Securities Exchange Act of 1934
92:. For example, disgorgement of
383:Liptak, Adam (June 22, 2020).
287:Liu v. Sec. & Exch. Comm'n
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417:Stock and Commodity Exchanges
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419:§ 22 (footnotes omitted).
32:Disgorge (disambiguation)
413:American Jurisprudence
332:American Jurisprudence
313:American Jurisprudence
270:Black's Law Dictionary
198:Commodity Exchange Act
172:statute of limitations
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106:American Jurisprudence
103:The second edition of
411:Marie K. Pesando, 73
209:Internal Revenue Code
245:Surcharge (sanction)
74:does not "penalize,"
113:Disgorgement is an
94:short-swing profits
49:regulatory agencies
389:The New York Times
84:Disgorgement is a
18:Disgorgement (law)
453:Judicial remedies
177:Subsequently, in
90:US securities law
57:unjust enrichment
43:In United States
16:(Redirected from
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27:Legal remedy
230:Bonus–malus
213:restitution
53:restitution
447:Categories
320:§ 78p(b)).
256:References
207:under the
205:deductible
180:Liu v. SEC
131:injunction
65:Liu v. SEC
415:(2d ed.)
240:Fair Fund
186:15 U.S.C.
70:equitable
235:Clawback
224:See also
88:used in
80:Overview
394:22 June
291:18-1501
170:in the
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168:Kokesh
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119:equity
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251:Notes
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217:IRS
154:In
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