Question: What is disgorgement?

Answer: Disgorgement is the act of giving back profits that have been obtained by unethical acts or are required to be given back by legal compulsion. Basically a court orders someone to give back money. And the theory behind disgorgement is that a wrongdoer—whether they are a convicted criminal or not—can be ordered to pay back money in order to prevent unjust enrichment of a person who should not have the money, who has not earned or otherwise deserves the money in some way. And so it’s legally considered not to be a punishment, but is instead a remedy to fix a situation.

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