As beforehand blogged about right here, the Supreme Court docket just lately upheld the SEC’s disgorgement authority however imposed sure limits, together with consideration of internet income. FTC protection practitioners instantly started to contemplate how the ruling would possibly probably influence FTC investigations and enforcement actions, together with the way it would possibly bear upon different judicial challenges as to whether Part 13(b) of the FTC Act authorizes the FTC to acquire equitable financial reduction.
On July 9, 2020, the Supreme Court docket granted certiorari within the AMG Capital Administration and Credit score Bureau Heart issues that ought to now determine the problems of whether or not Part 13(b) permits courts to award disgorgement.
In AMG v. FTC, the Ninth Circuit held that courts’ equitable powers embody awarding equitable financial reduction, together with disgorgement. In distinction, the Seventh Circuit in FTC v. Credit score Bureau Heart just lately disregard years of precedent when it held that the categorical phrases of Part 13(b) illustrate that Congress solely approved injunctive reduction, not equitable financial reduction or disgorgement.
The 2 issues have been consolidated and with a complete of 1 hour allotted for oral argument. The significance of those issues can’t be overstated as they conclusively resolve splits of authority relating as to whether or in what circumstances FTC attorneys are entitled to hunt equitable financial reduction within the type of disgorgement.
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