Liu v. Securities and Exchange Commission

Liu v. Securities and Exchange Commission
Argued March 3, 2020
Decided June 22, 2020
Full case nameCharles C. Liu, et al., v. Securities and Exchange Commission
Docket no.18-1501
Citations591 U.S. 71 (more)
140 S. Ct. 1936
Case history
PriorNo. 16-00974-CJC(AGRx), 262 F.3d 957 (C.D. Ca 2017); affirmed, 754 Federal Appendix 505 (9th Cir 2018); cert. granted, 140 S. Ct. 451 (2019).
Holding
A disgorgement award that does not exceed a wrongdoer's net profits and is awarded for victims is equitable relief permissible under 15 U.S.C. § 78u(d)(5).
Court membership
Chief Justice
John Roberts
Associate Justices
Clarence Thomas · Ruth Bader Ginsburg
Stephen Breyer · Samuel Alito
Sonia Sotomayor · Elena Kagan
Neil Gorsuch · Brett Kavanaugh
Case opinions
MajoritySotomayor, joined by Roberts, Ginsburg, Breyer, Alito, Kagan, Gorsuch, Kavanaugh
DissentThomas
Laws applied
Securities Act of 1933

Liu v. Securities and Exchange Commission, 591 U.S. 71 (2020), is a US Supreme Court case related to disgorgement awards sought by the Securities and Exchange Commission (SEC) for fraudulent activities. The Court ruled in an 8–1 decision that such disgorgement awards can be awarded by the courts as equitable relief under the Securities Act of 1933, 15 U.S.C. § 78u(d)(5), but they are limited to the wrongdoer's net profits and must be awarded for victims.[1]

  1. ^ Liu v. Sec. & Exch. Comm'n, No. 18-1501, 591 U.S. ___ (2020).