---
title: "Disgorgement"
type: Legal Term
source: https://casebriefly.com/legal-terms/disgorgement
---

# Disgorgement

Disgorgement is a restitutionary remedy that strips the wrongdoer of all gains or profits obtained through unlawful or inequitable conduct, regardless of whether the plaintiff suffered a corresponding loss. It serves a dual purpose: preventing unjust enrichment and deterring wrongful behavior by ensuring that misconduct is never profitable. The Supreme Court in Liu v. SEC (2020) confirmed that disgorgement in securities enforcement is a form of equitable relief limited to the wrongdoer's net profits (after deducting legitimate expenses) and must be awarded for the benefit of victims. Disgorgement is available in cases involving breach of fiduciary duty, fraud, securities violations, and other contexts where the defendant's gain exceeds the plaintiff's provable loss, making it a more potent remedy than compensatory damages alone.

## Related Terms

- accounting-of-profits
- unjust-enrichment-remedies
- restitution-damages
- constructive-trust

## Related Cases

- anglia-television-v-reed
- boomer-v-atlantic-cement

## Example

After a corporate insider traded on material nonpublic information and earned $3 million in profits, the SEC obtained a disgorgement order requiring the insider to surrender all trading gains to be distributed to harmed investors.

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Source: [Disgorgement — CaseBriefly](https://casebriefly.com/legal-terms/disgorgement)