Disgorgement (law)


Disgorgement is the forced giving up of profits obtained by illegal or unethical acts. Black's Law Dictionary defines disgorgement as "the act of giving up something (such as profits illegally obtained) on demand or by legal compulsion".

A court may order wrongdoers to pay back illegal profits, with interest, to prevent unjust enrichment. Disgorgement is a remedy and not a punishment.

In re Gleeson's Will (124 N.E.2d 624 (Ill. App. 1955)), disgorgement was used as a remedy when the trustee remained as a holdover on the testator's land and acquired a profit.