The Supreme Court held that a five year statute of limitations applies to actions by the SEC for disgorgement. The decision imposes a significant new limit on the SEC’s ability to seek recoupment of defendants’ profits in enforcement actions. The decision brings an end to a regulatory regime in which the SEC has applied separate time limits to its claims to monetary recovery depending on the theory of recovery, with SEC actions for “civil penalties” subject to the five-year statute of limitations of 28 U.S.C. § 2462, but its actions for “disgorgement” of profits not subject to any time limit.

Additional information on the case and ruling can be found here.