Supreme Court to Decide Circuit Split on Statute of Limitations for SEC Disgorgement Claims

This past Friday, the Supreme Court granted certiorari in Kokesh v. SEC, No. 16-529 (cert. granted Jan. 13, 2017), to review a circuit split on whether the SEC’s claims for disgorgement are limited to a five-year statute of limitations.  28 U.S.C. § 2462 places a five-year statute of limitations on any “action, suit or proceeding for the enforcement of any civil fine, penalty, or forfeiture.”  The Eleventh Circuit has held that this statute of limitations applies to SEC claims for disgorgement.  Other circuits, including the First, Ninth, Tenth, and D.C. Circuits, have held that the five-year statute of limitations does not apply to actions for disgorgement.  For more information about the Eleventh Circuit’s position, see our blog entry here.

We’ll be monitoring the case as it proceeds. Here’s a link to SCOTUSblog’s coverage of the case as well.

Posted by Margaret Flatt.

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