Sripetch v. Securities and Exchange Commission
In brief
The Supreme Court upheld the SEC's ability to seek disgorgement without proving that investors lost money.
- Where it stands
- Decided
Decided 9-0 · June 4, 2026 · Opinion by Justice Thomas
- What it’s about
- The Court unanimously ruled for the SEC, holding that the agency may obtain disgorgement—requiring a securities-law violator to give up wrongful profits—without proving that investors suffered a financial loss.
- Who it affects
- The ruling lets the SEC pursue disgorgement even when investors suffered no financial loss. An award still cannot exceed a wrongdoer's net profits and must be awarded for victims.
Summary: written with AI from the case record.
What it's about
The Court explained that disgorgement focuses on stripping a wrongdoer’s gains, and investors may be victims when their legally protected interests were violated even if they lost no money.
The broader issue is how the SEC's civil-enforcement power can strip wrongful profits when investors did not lose money.
Question presented
May the SEC seek equitable disgorgement under 15 U.S.C. §§ 78u(d)(5) and (d)(7) without showing investors suffered pecuniary harm?
What the Court decided
Holding
A showing of pecuniary loss to investors is not required before the SEC may obtain a disgorgement award. 154 F. 4th 980, affirmed.
- Result
- Affirmed
The vote
What's next
Lower courts will apply the ruling in future SEC disgorgement cases, and the SEC may seek these awards without proving investor losses. Justice Thomas said a future case should address whether disgorgement requires a jury trial.
Docket activity
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More questions
- What did the Supreme Court decide in Ongkaruck Sripetch v. SEC?
- The Court upheld the SEC's ability to seek disgorgement without proving investors suffered financial loss.
- How does the Sripetch ruling affect SEC disgorgement awards?
- The SEC may pursue disgorgement even when investors lost no money. Each award cannot exceed a wrongdoer's net profits and must be awarded for victims.
- Who wrote the opinions in Sripetch?
- Justice Gorsuch wrote the Court's unanimous opinion. Justice Thomas wrote a concurrence (a separate opinion agreeing with the result for different reasons).
- What issue remains open after the Sripetch decision?
- The Court did not decide whether disgorgement requires a jury trial. Justice Thomas said a future case should address that question.
- What happens next after the Sripetch decision?
- Lower courts will apply the ruling in similar SEC cases. The SEC may seek disgorgement without proving investor losses.
Sources
Primary materials plus reporting. Best-effort analysis: this explainer relies on a mix of primary materials and trusted secondary sources. Official filings and opinions remain authoritative.