SECURITIES AND EXCHANGE COMMISSION v. TEAM RESOURCES INCORPORATED (2020)

ON REMAND FROM THE SUPREME COURT OF THE UNITED STATES

Our previous decision in this appeal, see SEC v. Team Resources, Inc., 942 F.3d 272 (5th Cir. 2019), has been vacated and remanded by the Supreme Court “for further consideration in light of Liu v. SEC, 591 U.S. ––––, 140 S. Ct. 1936, ––– L.Ed.2d –––– (2020).” Team Resources, Inc. v. SEC, No. 19-978, ––– U.S. ––––, ––– S.Ct. ––––, ––– L.Ed.2d ––––, 2020 WL 3578673, at *1 (U.S. July 2, 2020). As relevant here, Liu held “that a disgorgement award that does not exceed a wrongdoer's net profits and is awarded for victims is equitable relief permissible under [15 U.S.C.] § 78u(d)(5).” 140 S. Ct. at 1940. Liu also discussed various “principles that may guide the lower courts’ assessment” of the amount of disgorgement that may be lawfully awarded in particular cases. Id. at 1947; see also id. at 1947–50.

In this case, the district court did not have the benefit of Liu’s guidance when it determined the amount of disgorgement. Application of Liu to the facts of this case should be left in the first instance to the district court's sound judgment.

We therefore VACATE the judgment of the district court and REMAND the case for further proceedings consistent with the Supreme Court's decision in Liu.

FOOTNOTES

FOOTNOTE.  

Per Curiam:* FN* Pursuant to 5th Circuit Rule 47.5, the court has determined that this opinion should not be published and is not precedent except under the limited circumstances set forth in 5th Circuit Rule 47.5.4.