Sadeghi Quoted on SEC Penalty Restrictions Imposed by SCOTUS

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Sadeghi Quoted on SEC Penalty Restrictions Imposed by SCOTUS

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CQ Roll Call

Partner Kayvan Sadeghi was quoted on a U.S. Supreme Court decision that imposed restraints on the power of the U.S. Securities and Exchange Commission (SEC) to seek disgorgement.

Kayvan said that the three limitations imposed by the ruling invite more litigation in the lower courts over the scope of each limitation, and may impact SEC investigations.

"The opinion limits joint and several liability to circumstances involving concerted wrongdoing,” Kayvan said. "That may have a significant impact on insider trading cases, where tippers were held jointly liable for downstream profits, and to any investigations where the prospect of joint and several liability provided a strong incentive for some individuals to settle and/or cooperate."