News & Analysis as of

Disgorgement

The Volkov Law Group

Liberty Mutual Pays $4.7 Million for FCPA Declination

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In the first FCPA declination under the Trump Administration, Liberty Mutual Insurance Company paid $4.7 million in disgorgement and received a declination letter from the Department of Justice. The declination reflects...more

Orrick, Herrington & Sutcliffe LLP

District court sides with CFPB and disgorges relief defendant’s funds

On July 31, a magistrate judge for the U.S. District Court for the Western District of New York recommended denying a relief defendant’s motion to dismiss a complaint filed by the CFPB and several state attorneys general...more

Charles E. Rounds, Jr. - Suffolk University...

When trustee’s unauthorized self-dealing causes no direct harm to trust corpus can trustee still be surcharged?

Profit narrowly defined is total revenue minus total expenses, i.e., net gain. Profit broadly defined is merely a synonym for benefit. When a trustee’s unauthorized self-dealing directly harms the trust estate, the trustee is...more

Holland & Knight LLP

SEC Feels the Heat

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Earlier this year, the U.S. Court of Appeals for the First Circuit vacated and remanded a $93 million district court judgment entered against a broker-dealer and investment adviser for allegedly inadequate disclosures of...more

Blake, Cassels & Graydon LLP

OSC Finalizes Rules for Distribution of Disgorged Funds to Harmed Investors

On June 12, 2025, the Ontario Securities Commission (OSC) published its final rules to implement a new statutory framework that will facilitate distributing amounts collected by the OSC under disgorgement orders to harmed...more

Nutter McClennen & Fish LLP

Nutter Securities Enforcement Update: July 1, 2025

The Nutter Securities Enforcement Update is a periodic update of noteworthy recent securities enforcement activity, settlements, decisions, and charges. We provide brief summaries that highlight recent enforcement action...more

Seyfarth Shaw LLP

Papa’s Got a Brand New Bag, and it Might be Infringing – Cannabis Companies Clash Over Trademarks for Storage Bags

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IP cases in the cannabis industry are lighting up court dockets more and more. In a new case with potential for serious baggage, Kinzie Advanced Polymers, LLC (“Kinzie”) filed a federal lawsuit against a group of...more

Stikeman Elliott LLP

OSC Adopts Framework to Distribute Disgorged Funds to Harmed Investors

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The Ontario Securities Commission (“OSC”) has published final rules (the “Final Rules”) that will create a new statutory framework to facilitate the distribution of funds that the OSC receives under disgorgement orders to...more

Davies Ward Phillips & Vineberg LLP

Expanded Scope for Private Actions Under Canada's Competition Act Now in Effect

Amendments to the Canadian Competition Act (Act) that came into effect on June 20, 2025 significantly expand the rights and incentives for private parties to seek orders from the Competition Tribunal (Tribunal). Among other...more

Bradley Arant Boult Cummings LLP

SEC Disgorgement Stuck in Circuit Split After Supreme Court Declines to Intervene

On June 6, 2025, the U.S. Supreme Court denied a petition for certiorari in Navellier & Associates, Inc. v. SEC, declining to resolve a circuit split regarding the circumstances under which the U.S. Securities and Exchange...more

Troutman Pepper Locke

Supreme Court Denies Certiorari in SEC Disgorgement Case

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On June 6, the U.S. Supreme Court denied the petition for certiorari in the case of Navellier & Associates, Inc. v. Securities and Exchange Commission (SEC). This decision effectively upholds the lower courts’ rulings,...more

Fisher Phillips

Federal Appeals Court Decision Reminds Employers About Their Duty to Monitor Service Providers of ERISA-Covered Health and Welfare...

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A federal appeals court just illustrated the importance of an employer’s duty to monitor service providers that assist with the administration of employee welfare benefit plans. In the May 21 decision of Tiara Yachts v. Blue...more

Foley & Lardner LLP

First Circuit’s Reversal of Summary Judgment Clarifies Materiality Standard for Advisory Conflicts

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A recent ruling may raise the bar for the Securities and Exchange Commission (SEC) in charging registered investment advisers for omissions of potential conflicts and seeking disgorgement, giving the defense bar additional...more

Troutman Pepper Locke

SEC Briefs Disgorgement and Investor Harm in Navellier v. SEC

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In the recent Supreme Court case, Navellier & Associates, Inc. v. Securities and Exchange Commission (SEC), the petitioners sought a writ of certiorari challenging the decisions of the lower courts regarding the scope of...more

Venable LLP

SEC Must Return $93 Million Penalty, First Circuit Says

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The First Circuit, in a closely watched securities case, reversed a $93 million summary judgment ruling for the Securities and Exchange Commission this April. ...more

Eversheds Sutherland (US) LLP

SEC v. Commonwealth: a win for the securities industry

On April 1, 2025, the First Circuit Court of Appeals vacated a nearly $95 million judgment against our client Commonwealth Financial Network related to the sufficiency of Commonwealth’s revenue-sharing disclosures. The First...more

Foster Garvey PC

Shared Names, Separate Profits: What Dewberry Tells Us About Trademark Liability

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The U.S. Supreme Court’s unanimous ruling in Dewberry Group v. Dewberry Engineers Inc. (23-900 (604 U.S. _____ (2025)), provides important guidance on corporate separateness, trademark enforcement and the scope of damages...more

Morgan Lewis

First Circuit Vacates $93 Million Judgment for SEC, Including $65 Million Disgorgement Award

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On April 1, the US Circuit Court of Appeals for the First Circuit vacated a $93 million judgment for the SEC against Commonwealth Financial, including a $65 million disgorgement award. The three-judge panel concluded that the...more

Ropes & Gray LLP

First Circuit Vacates Summary Judgment Award and $93 Million Order in Revenue Sharing Case

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On April 1, 2025, the United States Court of Appeals for the First Circuit overturned a $93 million judgment issued against Commonwealth Financial Network (“Commonwealth”) nearly one year ago in a case by the Securities and...more

McDermott Will & Schulte

When Is a Trade Secret Accessible? As Soon as It Can Be Reverse Engineered

Although the US Court of Appeals for the Federal Circuit upheld a damages award for trade secret misappropriation and breach of a confidentiality agreement, it found that the district court erred in its determination of when...more

Jones Day

First Circuit Reverses SEC Win in $93 Million Investment Adviser Disclosure Case

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The court rejects the SEC's per se materiality argument and requires proof of a causal connection between the defendant's allegedly inadequate disclosures and purported unlawful profits....more

Irwin IP LLP

Time To “Dew” It Again. 

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Dewberry Group, Inc., FKA Dewberry Capital Corp v. Dewberry Engineers Inc., No. 23-900, 604 U.S. (2025) - On February 26, 2025, the United States Supreme Court unanimously overturned a $43 million damages award arising out...more

Seyfarth Shaw LLP

A RAW Deal – Court Opens the Door for Profit Disgorgement in Cannabis Trademark Case

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Last year, the case of BBK Tobacco & Foods LLP v. Central Agriculture Inc. made headlines in the trademark world when the Ninth Circuit held that district courts have jurisdiction to alter or cancel trademark applications. ...more

Mintz - Intellectual Property Viewpoints

Whose Profits Are These, Anyway? Who Constitutes The Defendant For Purposes of Disgorgement Of Profits In A Trademark Infringement...

In a unanimous (and unsurprising) decision on Wednesday, the Supreme Court vacated an award of nearly $43 million in disgorged profits to a trademark infringement plaintiff because those profits were not attributable to the...more

Jones Day

Affiliates (Currently) Off the Hook: Supreme Court Vacates $43M Trademark Infringement Award

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The Supreme Court vacates a decision treating a company and its affiliates as "one and the same" for purposes of disgorging profits for trademark infringement under the Lanham Act, but leaves many questions unaddressed....more

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