Supreme Court Upholds SEC Authority to Obtain Disgorgement Without Actual Loss But Leaves Important Questions Unanswered

The Supreme Court’s decision in Sripetch v. SEC gives the SEC a meaningful win, holding that the agency may seek disgorgement of ill-gotten gains without proving that investors suffered financial losses.

But the Court stopped short of resolving the broader questions that could prove even more consequential. It left open whether statutory disgorgement remains an equitable remedy subject to Liu’s limitations and whether defendants are entitled to a jury trial when the SEC seeks disgorgement under the Exchange Act.

Our latest blog post examines what Sripetch decided, the critical issues it left unanswered, and why those unresolved questions are likely to shape the next wave of SEC enforcement litigation.

The End of the Independent Agency: Supreme Court Overrules Humphrey′s Executor

On June 29, 2026, the Supreme Court issued one of the most consequential administrative law decisions in nearly a century. In Trump v. Slaughter, a 6–3 majority overruled Humphrey’s Executor v. United States, the 1935 decision that allowed Congress to shield certain independent agency commissioners from at-will presidential removal. Chief Justice John Roberts, writing for the Court, held that for-cause removal protections for the heads of agencies exercising executive power violate the Constitution’s separation of powers. The decision gives the President broad authority to remove commissioners serving on agencies that exercise executive power.

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In House Hearing, DAAG Jenny Discusses FCA Enforcement Priorities Related to Grants, Faces Questioning on Using FCA to Target Discrimination

On June 24, 2026, the Investigations and Oversight Subcommittee of the U.S. House of Representatives Committee on Science, Space, and Technology held a hearing on “Federal Research Funds: The False Claims Act’s Role in Combating Grant Fraud.”  Brenna Jenny, DOJ’s Deputy Assistant Attorney General for Commercial Litigation, testified on three FCA enforcement “focus areas” related to federal grants, before responding to questions regarding the use of the statute to target discrimination.

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DOJ’s 2026 Health Care Fraud Takedown Highlights Increased Coordination and Data-Driven Enforcement

This week, DOJ announced the results of its 2026 National Health Care Fraud Takedown, which involved charges against 455 defendants, including 90 medical professionals, in connection with alleged schemes involving more than $6.5 billion in false claims submitted to Medicare, Medicaid, and other federal health care programs.  The Takedown involved the participation of 50 state Medicaid Fraud Control Units and included cases in 56 federal districts and 45 U.S. states and territories.

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Federal Agencies Propose More GENIUS AML/CFT Rules: Customer Identification Program and OCC Conforming Updates

As the AML compliance framework for payment stablecoin issuers continues to take shape under the GENIUS Act, federal regulators proposed another set of rules that will have important implications for compliance program design and implementation. The latest FinCEN, banking agency, and OCC proposals clarify customer identification program (CIP) expectations, reinforce a bank-like approach to AML/CFT compliance, and provide additional insight into the OCC’s supervisory and enforcement posture.

Our latest blog breaks down the proposals, highlights the practical compliance takeaways for stablecoin issuers, and explains what these developments mean for firms preparing for the new federal AML/CFT regime.

June Antitrust and Competition Bulletin: Top-of-Mind Global Antitrust Issues

Recent antitrust developments offer important insights into evolving enforcement priorities on both sides of the Atlantic. This month’s roundup examines the appointment of Stanley Woodward to assume authority to act as Assistant Attorney General for the DOJ Antitrust Division, a leadership change that could influence the Division’s enforcement approach and decision making in the near term. The post also discusses the European Commission’s continued scrutiny of coordination among competitors through minority shareholdings, signaling ongoing concern with information sharing, governance rights, and other conduct that may facilitate anti-competitive behavior.

The update further explores the FTC’s views on merger remedies, recent healthcare merger enforcement actions, and growing regulatory attention to modern pricing practices. Read the full post for key takeaways on the latest antitrust enforcement trends and the compliance considerations they present for businesses.

DOJ Reaches $507,144 Settlement with Defense Contractor, Signals Increased FCA Scrutiny of Cybersecurity Self-Assessments

On June 18, 2026, DOJ announced a settlement with LOGZONE Inc., a defense contractor, to pay $507,144 to resolve allegations that it violated the False Claims Act through its failure to satisfy cybersecurity requirements in its contracts with the Department of the Navy (“the Navy”). This settlement involves yet another coordinated enforcement effort through the recently created Task Force to Eliminate Fraud, previously reported on here and here. DOJ reached this settlement with assistance from the Department of the Navy, the Department of the Army, and the Defense Contract Management Agency (“DCMA”). This settlement underscores cybersecurity compliance as a focus of FCA enforcement.

Supreme Court Limits Enforcement of Appellate Waivers in Cases Involving Miscarriages of Justice

On June 18, 2026, the U.S. Supreme Court held in Hunter v. United States that appellate waivers in plea agreements are not enforceable when doing so would result in a “miscarriage of justice.” The Court rejected arguments that knowing and voluntary appeal waivers must always be enforced, recognizing instead a narrow exception for sentences tainted by obvious and egregious errors that threaten public confidence in the judiciary.

The decision resolves a longstanding circuit split and underscores the judiciary’s independent role in safeguarding the integrity of the criminal justice system. Although appellate waivers remain generally enforceable, Hunter creates a limited pathway for defendants to challenge certain unlawful sentences notwithstanding a waiver provision in a plea agreement.

The case also produced a notable concurrence from Justice Gorsuch, joined by Justices Sotomayor and Jackson, questioning the modern plea-bargaining system and the leverage prosecutors wield in securing guilty pleas and appellate waivers. Read more in this blog post.

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<a target=‘_blank’ href="https://www.sidley.com/en/people/a/axel-douglas-a">Douglas A. Axel</a>

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Yuet Ming Tham

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Shu Min Ho

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Naomi A. Igra

San Francisco
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Kristin Graham Koehler

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Geeta Malhotra

Chicago
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Michael D. Mann

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Ian McGinley

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Lisa H. Miller

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Julia G. Mirabella

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Alexa Poletto

New York
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Washington, D.C.
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Jacqueline Pruitt

Chicago
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Doreen M. Rachal

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Kevin Rubino

San Francisco
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Leslie A. Shubert

Washington, D.C.
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David A. Silva

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Michele Tagliaferri

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Frank R. Volpe

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Marisa S. West

Washington, D.C.
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Angela M. Xenakis

Washington, D.C.

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