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Sarbanes-Oxley News & Developments
Sarbox Takes a ConstitutionalBy targeting the 'massive unchecked powers,' of the PCAOB a lawsuit also poses a constitutional challenge to Sarbanes-Oxley.
> > By challenging the constitutionality of the PCAOB, plaintiffs in a lawsuit filed last week believe that they can spur the courts and Congress to undo the entire Sarbanes-Oxley Act.
While many federal laws have a "severability" provision that enables Congress to change a section of a law without dismantling it entirely, Sarbanes-Oxley does not, according to Michael Carvin, a lawyer in Washington and lead attorney for the plaintiffs. A successful lawsuit might prompt a "remedy broader than fixing the board," he adds, and perhaps "force Congress to face the issue" of passing legislation to overhaul Sarbox as a whole.
Source: CFO
Published:2006-02-14
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