Blue Brief 2025-2026

defendant’s right to a jury trial, which is guaranteed under the Seventh Amendment for legal claims but not equitable ones. In Sripetch , the Court assumed, without deciding, that SEC disgorgement is subject to traditional equitable rules. Given a split between the Second and Fifth Circuits on the matter, the issue of whether disgorgement is legal or equitable in nature may soon come before the Court.

In sum, the Court’s decision in Sripetch preserves disgorgemen t as one of the SEC’s most powerful remedial tools. After Sripetch , absence of investor financial harm will not be a valid defense against SEC disgorgement claims. The impact of this decision may be particularly significant for cases involving insider trading, accounting, and other such matters where investors’ legally protected interests have been invaded but pecuniary harm may be diffuse, difficult to quantify, or not easily demonstrated.

Caley Petrucci

UNIVERSITY OF SAN DIEGO SCHOOL OF LAW | Faculty Review of 2025-2026 U.S. Supreme Court Term | Page 25