An expected Supreme Court ruling on the extent of the SEC’s authority to recover gains from disgorgement could raise directors and officers (D&O) liability insurance. Although insurers do not offer cover for disgorgement, if the ruling reduces the SEC's ability to pursue companies for ill-gotten gains, that increases the likelihood of wronged parties pursuing private litigation against them. This would push up the cost of D&O cover. The SEC said it had assessed $4.3bn in fines and disgorgement in 2018, up from $3.9bn in fiscal 2019. Industry commentators are wary of predicting the court's decision.
An expected Supreme Court ruling on the extent of the SEC’s authority to recover gains from disgorgement could raise directors and officers (D&O) liability insurance. Although insurers do not offer cover for disgorgement, if the ruling reduces the SEC's ability to pursue companies for ill-gotten gains, that increases the likelihood of wronged parties pursuing private litigation against them. This would push up the cost of D&O cover. The SEC said it had assessed $4.3bn in fines and disgorgement in fiscal 2019, up from $3.9bn in 2018. Industry commentators are wary of predicting the court's decision.