Client Alert: Two Circuits Hold Statute of Limitations Does Not Apply To SEC Employment, Officer, and Director Bars

On November 6, 2020, the Court of Appeals for the DC Circuit held that Kokesh v. SEC, 137 S. Ct. 1635 (2017)—in which the court applied the five-year limitations period under 28 U.S.C. § 2462 to SEC claims seeking disgorgement—did not apply to Financial Industry Regulatory Authority (FINRA)’s imposition of an employment, officer, or director bar. In Saad v. SEC, No. 19-1214 (DC Cir. 2020), the court narrowly construed Kokesh, finding that it arose in a context and on facts distinguishable from Saad’s case. The Saad decision follows the Third Circuit’s earlier decision that also held that Kokesh did not time bar the SEC from prohibiting a defendant from serving as an officer or director.

Is a trend brewing? And, if so, will that trend hold? Or are these cases merely outliers that arose in unique circumstances? The answers remain to be seen. In the meantime, litigants should watch closely to see how other courts apply Section 2462 in the context of injunctions that prevent an individual from being employed in the securities industry or serving as an officer or director of a public company.

To read the full alert, please click here.

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© 2026 Jenner & Block LLP. Attorney Advertising. Jenner & Block LLP is an Illinois Limited Liability Partnership including professional corporations. This publication, presentation, or event is not intended to provide legal advice but to provide information on legal matters and/or firm news of interest to our clients and colleagues. Readers or attendees should seek specific legal advice before taking any action with respect to matters mentioned in this publication or at this event. The attorney responsible for this communication is Brent E. Kidwell, Jenner & Block LLP, 353 N. Clark Street, Chicago, IL 60654-3456. Prior results do not guarantee a similar outcome. Jenner & Block London LLP, an affiliate of Jenner & Block LLP, is a limited liability partnership established under the laws of the State of Delaware, USA and is authorised and regulated by the Solicitors Regulation Authority with SRA number 615729. Information regarding the data we collect and the rights you have over your data can be found in our Privacy Notice. For further inquiries, please contact dataprotection@jenner.com.

Client Alert: Two Circuits Hold Statute of Limitations Does Not Apply To SEC Employment, Officer, and Director Bars

On November 6, 2020, the Court of Appeals for the DC Circuit held that Kokesh v. SEC, 137 S. Ct. 1635 (2017)—in which the court applied the five-year limitations period under 28 U.S.C. § 2462 to SEC claims seeking disgorgement—did not apply to Financial Industry Regulatory Authority (FINRA)’s imposition of an employment, officer, or director bar. In Saad v. SEC, No. 19-1214 (DC Cir. 2020), the court narrowly construed Kokesh, finding that it arose in a context and on facts distinguishable from Saad’s case. The Saad decision follows the Third Circuit’s earlier decision that also held that Kokesh did not time bar the SEC from prohibiting a defendant from serving as an officer or director.

Is a trend brewing? And, if so, will that trend hold? Or are these cases merely outliers that arose in unique circumstances? The answers remain to be seen. In the meantime, litigants should watch closely to see how other courts apply Section 2462 in the context of injunctions that prevent an individual from being employed in the securities industry or serving as an officer or director of a public company.

To read the full alert, please click here.

Related Capabilities

Related Locations

© 2026 Jenner & Block LLP. Attorney Advertising. Jenner & Block LLP is an Illinois Limited Liability Partnership including professional corporations. This publication, presentation, or event is not intended to provide legal advice but to provide information on legal matters and/or firm news of interest to our clients and colleagues. Readers or attendees should seek specific legal advice before taking any action with respect to matters mentioned in this publication or at this event. The attorney responsible for this communication is Brent E. Kidwell, Jenner & Block LLP, 353 N. Clark Street, Chicago, IL 60654-3456. Prior results do not guarantee a similar outcome. Jenner & Block London LLP, an affiliate of Jenner & Block LLP, is a limited liability partnership established under the laws of the State of Delaware, USA and is authorised and regulated by the Solicitors Regulation Authority with SRA number 615729. Information regarding the data we collect and the rights you have over your data can be found in our Privacy Notice. For further inquiries, please contact dataprotection@jenner.com.

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