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Simple English definitions for legal terms
disgorgement
Read a random definition: universal legatee
A quick definition of disgorgement:
Disgorgement: When someone does something wrong or illegal and makes money from it, they have to give up all the money they made. This is to make sure they don't benefit from doing something bad and to discourage others from doing the same thing.
A more thorough explanation:
Definition: Disgorgement is a legal remedy that requires a person or entity to give up any profits they made as a result of illegal or wrongful acts. The purpose of this remedy is to prevent the person or entity from benefiting from their illegal or wrongful conduct and to make sure that they do not profit from it.
Example: In a case where a company is found to have engaged in insider trading, the court may order the company to disgorge any profits it made from the illegal activity. For instance, in SEC v. First Jersey Securities, Inc, the court ordered the company to disgorge the profits it made from insider trading.
Explanation: The example illustrates how disgorgement works in practice. The court orders the company to give up any profits it made from the illegal activity, which in this case was insider trading. This prevents the company from benefiting from its illegal conduct and makes sure that it does not profit from it.