An expected federal Court ruling on the exercise of the SEC ’s authority to recover gains from disgorgement would raise directors and officers ( D&O ) liability concerns . 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 bankruptcy 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 challenging 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.