SEC Enforcement Remedies Under Microscope Amid Aggressive Push

Companies and individuals accused of securities law violations are increasingly pushing back on the SEC’s penalties and other remedies, testing the boundaries of the agency’s aggressive use of its enforcement tools.

The Securities and Exchange Commission’s enforcement expansion aligns with agency chair Gary Gensler’s investor protection priorities. The agency filed 434 new enforcement actions in fiscal year 2021, a 7% increase over the prior year.

The SEC’s assertiveness in seeking enforcement remedies has correspondingly emboldened defendants to question what is appropriate. Many of them have argued the agency is being overly punitive, latching onto a theme from recent US Supreme ...