Supreme Court Rules SEC Not Required to Prove Investor Loss for Disgorgement

The U.S. Supreme Court, in a unanimous opinion in Sripetch v. SEC on June 4, 2026, held that the Securities and Exchange Commission (SEC) does not need to prove that investors suffered actual financial loss to obtain disgorgement in a civil action. The Court relied on "traditional equitable principles," which do not require a showing of pecuniary loss for an award of unjust profits. This ruling unifies an issue that had previously split circuit courts and is significant for the SEC's enforcement capabilities.