The 8-1 decision is a victory for the federal government and its power to “disgorge” money from those who obtained it illegally.

“The court holds today that a disgorgement award that does not exceed a wrongdoer’s net profits and is awarded for victims is equitable relief permissible under” federal law, said Justice Sonia Sotomayor for the court in Liu vs. SEC.

The ruling is likely to impact direct sellers as they contest FTC “over-reaching” in pyramid scheme cases.

Full article here.

 

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