Super-Disgorgement Ruling By An Appeals Court

In insider trading cases, the SEC can hold defendants responsible not only for their personal profits, but for money those illegal trades generate for their employers, said a  Second Circuit Court of Appeals panel in a 2-1 decision. The ruling could impact several ongoing civil cases in New York, and serve as a new deterrent to insider trading cases. The dissenting judge maintained that disgorgement, when used by the SEC in these cases, is meant to be remedial rather than punitive.