CFPB Turns to Ninth Circuit to End Consumer Relief Losing Streak

The Consumer Financial Protection Bureau, arguing before the Ninth Circuit Thursday, will try to break a string of high-profile court decisions limiting federal power to recoup ill-gotten gains from fraudsters in civil cases.

The CFPB faces a daunting task in arguing that the U.S. Supreme Court’s June 2020 decision in Liu v. Securities and Exchange Commission—and a more recent Seventh Circuit ruling—shouldn’t restrict the bureau’s ability to get redress for consumers.

The Liu decision limited the SEC’s ability to get disgorgement as equitable relief for harmed investors, saying the regulator could only go after net profits from a fraudulent ...