Disgorgement

Where a person is forced to give back any profit he has made or money he has received either illegally or unethically at the expense of another. Disgorgement prevents unjust enrichment (where one party profits financially in a way which is unfair to another). Disgorgement may follow a contractual demand or an order of the court. Interest is usually added to any monies which are disgorged. Disgorgement may arise, for example, when a payment is made which is later deemed to be a preference or a transaction at an undervalue.