Saturday, March 24, 2007

Judge Dismisses Sarbanes-Oxley Lawsuit

A lobbyist for big business on Wednesday vowed to continue challenging the constitutionality of a 2002 anti-fraud law after a federal judge dismissed a lawsuit the group brought against the independent board Congress created to oversee the accounting industry.

The Free Enterprise Fund, which filed the suit in February 2006, argued that the Public Company Accounting Oversight Board violates the Constitution's mandated separation of powers among the three federal branches because its five members are not appointed by the president, cannot be removed by him and Congress does not control the board's budget.

But U.S. District Court Judge James Robertson wrote in a 14-page opinion that granted summary judgment in favor of the board that "the plaintiffs have brought a facial challenge to the PCAOB, presenting nothing but an hypothetical scenario of an overzealous or rogue PCAOB investigator."

Kenneth W. Starr, co-counsel for the lobbying group, said in a press release "we will continue to press our important cause in the Court of Appeals and the Supreme Court."

Judge Dismisses Sarbanes-Oxley Lawsuit

Labels: PCAOB lawsuit

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2 Comments:

: there is a need to reassert that much of what SOX requires is actually about good busines management. check this The Information Technology Process Institute (ITPI) and consulting firm Pricewaterhouse Coopers released studies into IT controls performance and IT governance.

CIO Magazine interviewed Dwayne Melancon, ITPI research fellow, and Steve Woolley, partner of the Pricewaterhouse Coopers advisory and technology practice, about the results and discussed how a CIO can turn IT controls into business productivity.

http://www.cio.com.au/index.php/id;593558102

more on the research is here
http://www.itpi.org/home/default.php; March 24, 2007
: Uh, thanks Wayne for the non-sequitor.

I do appreciate you flagging this new study.; March 25, 2007