Supreme Court Sides With SEC in Dispute About Recovering Illegal Profits

A federal appeals court previously ruled recovery efforts could proceed even in the absence of proof that investors lost money.

The Supreme Court in Washington on May 21, 2026. Madalina Kilroy/The Epoch Times

The U.S. Supreme Court on June 4 unanimously rejected a challenge to the U.S. Securities and Exchange Commission’s (SEC’s) broad authority to recover illegal profits through the disgorgement process.

Disgorgement is a process in which a person or company is made to give up profits gained from illegal or unethical acts.