A federal appeals court has mandated the recalculation of a disgorgement order against Dallas securities lawyer William Stack. The US Court of Appeals for the Fifth Circuit declared that the initial order for more than $333,000 significantly overstated the amount Stack was unjustly enriched by in an allegedly fraudulent securities sale.
According to the Fifth Circuit, “Holding Stack liable for funds he did not keep or benefit from does not constitute ‘a reasonable approximation of a defendant’s unjust enrichment,’ as required.” The court has now directed the lower court to revise its disgorgement order to reflect only the actual amount Stack received and benefited from.
- SEC alleged fraudulent securities sale by the company
- Court says the lawyer shouldn’t be liable for the full amount