June 22 decision in Liu v. SEC allows agency to seek monetary relief; major setback to limiting FTC’s authority
By: John Villafranco
John Villafranco, partner with Kelley Drye LLP
The Supreme Court issued an 8-to-1 decision on June 22 in the highly anticipated case of Liu v. SEC. The opinion, authored by Justice Sotomayor (with Justice Thomas dissenting), holds that a “ disgorgement award that does not exceed a wrongdoer’s net profits and is awarded for victims is equitable relief,” and allows the Securities and Exchange Commission (SEC) to seek such relief under the Securities Act.