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"High Court's SEC Enforcement Ruling has Tax Consequences"

June 26, 2020

Pete Lowy, Juan Vasquez, and Morgan Alleyn Article on "High Court's SEC Enforcement Ruling has Tax Consequences"

Law360 Tax Authority

The U.S. Supreme Court recently delivered its decision in Liu v. U.S.
Securities and Exchange Commission, an SEC enforcement case that has
important tax implications for companies facing potential disgorgement of
their net profits in actions brought by government agencies. Disgorgement may arise in an array of SEC enforcement contexts, including securities fraud, insider trading, foreign bribery and other areas.

In a Law360 Tax Authority article from June 26, 2020, Pete Lowy, Juan Vasquez, Jr. and Morgan Alleyn explain that the High Court's SEC enforcement ruling has tax consequences. Also, clients involved in SEC or other potential enforcement actions involving disgorgement should carefully consider the tax and other implications from Liu when negotiating disgorgement amounts and drafting stipulations.

To view the full article, click here.