Liu v. Securities and Exchange Commission

This court eventually accepted disgorgement as an equitable remedy under Section 78 UD 5 in 2020.

In Liu v. SEC, this court held that, despite disgorgement's relatively recent vintage and protean character, it was a traditional equitable remedy authorized by Section 78 UD 5's general provision for equitable relief.

The court also emphasized that disgorgement would need to comply with traditional equitable rules such as the duty to return disgorged funds to victims at least when doing so was feasible.

But less than a year later, Congress amended the Exchange Act, Congress added a new subsection, Section 78 UD 7, authorizing the SEC to seek disgorgement.