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Recent Amendments To The Securities Exchange Act Of 1934 Strengthen The SEC's Disgorgement Powers | Lowenstein Sandler LLP


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On Jan. 1, 2021, the U.S. Congress passed amendments to the Securities Exchange Act of 1934 (Exchange Act) that significantly expand the U.S. Securities and Exchange Commission’s (SEC) authority to recover disgorgement of any “unjust enrichment” received by individuals and entities that violate the federal securities laws. Specifically, the amendments, which are codified at Section 6501 of the National Defense Authorization Act for Fiscal Year 2021 (NDAA),
1 accomplish the following:
Amend Section 21(d) of the Exchange Act to expressly authorize the SEC to seek disgorgement in U.S. district courts of “any unjust enrichment” from persons who have violated the federal securities laws.  ....

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