Disgorgement is the forced giving up of profits obtained by illegal

Law

Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...

 or unethical

Ethics

Ethics, also known as moral philosophy, is a branch of philosophy that addresses questions about morality—that is, concepts such as good and evil, right and wrong, virtue and vice, justice and crime, etc.Major branches of ethics include:...

 acts. A court may order wrongdoers to pay back illegal profits, with interest, to prevent unjust enrichment

Unjust enrichment

Unjust enrichment is a legal term denoting a particular type of causative event in which one party is unjustly enriched at the expense of another, and an obligation to make restitution arises, regardless of liability for wrongdoing.Definition:...

. Disgorgement is a remedy

Legal remedy

A legal remedy is the means with which a court of law, usually in the exercise of civil law jurisdiction, enforces a right, imposes a penalty, or makes some other court order to impose its will....

 and not a punishment

Punishment

Punishment is the authoritative imposition of something negative or unpleasant on a person or animal in response to behavior deemed wrong by an individual or group....

.

Black's Law Dictionary

Black's Law Dictionary

Black's Law Dictionary is the most widely used law dictionary in the United States. It was founded by Henry Campbell Black. It is the reference of choice for definitions in legal briefs and court opinions and has been cited as a secondary legal authority in many U.S...

 defines disgorgement as "the act of giving up something (such as profits illegally obtained) on demand or by legal compulsion".

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

Testator

A testator is a person who has written and executed a last will and testament that is in effect at the time of his/her death. It is any "person who makes a will."-Related terms:...

's land and acquired a profit.

See also

• Bonus-Malus
  Bonus-Malus
  The term bonus-malus is used for a number of business arrangements which alternately reward or penalize .It is used, for example, in the call center and insurance industries.- Call centers :...
  
  
• clawback
• Fair Fund
  Fair Fund
  A Fair Fund is a fund established by the U.S. Securities and Exchange Commission to distribute disgorgements and penalties to defrauded investors...
  
  
• Surcharge (sanction)
  Surcharge (sanction)
  In the United Kingdom a public servant, for example a local government officer, who has unlawfully spent public funds, or caused loss to a public authority through misconduct may be surcharged to recover public money...