What is the difference between “disgorgement” and “civil penalty”?
“Disgorgement” is the repayment of profits that is imposed on violators by the courts or by a government agency. Disgorgement is a remedy not a punishment. A “civil penalty” is a punitive fine imposed by a civil court or government agency on an entity that is alleged to have engaged in a sanctionable activity. For purposes of this distribution, the distinction between “disgorgement” and a “civil penalty” is irrelevant because both the disgorgement and the civil penalty amounts in this matter will be distributed to the shareholders.
