Disgorgement, an Overlooked Aspect of the Ralph Lauren Settlement?

The FCPA Blog
04.30.13

In this article, Marc Alain Bohn discusses the disgorgement Ralph Lauren paid as part of its recent settlement with the SEC. By definition, disgorgement is supposed to deprive a company of any illicit profits realized from its misconduct. In the Ralph Lauren settlement, however, the SEC required the company to instead disgorge the amount that its Argentine subsidiary allegedly paid in illicit bribes and gifts to Argentine officials rather than the company's return on those bribes. Since the SEC's imposition of disgorgement is discretionary, there are several explanations which could account for disgorgement imbalances like this, including cooperation, the method of calculation, and negotiation.

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