Thursday, December 09, 2004

Court Defies SEC, Upholds Limitations on Expiring Fraud Claims

Before Sarbanes-Oxley, the law stated that investors who were made aware of fraudulent activities had to file lawsuits against the misbehaving companies within one year of discovering the fraud and within three years of the actual fraudulent activity. The Sarbanes-Oxley Act of 2002 (SOX) extended the time period for filing claims to two years from the discovery and five years from the fraudulent activity.

But on Monday, December 6, 2004, the Second U.S. Circuit Court of Appeals ruled that, due to ambiguous language in SOX regarding the effective dates of the time periods and the fact that there is no clear information as to the intent of Congress on the issue, there is no precedent for making the claim period retroactive.

Court Defies SEC, Upholds Limitations on Expiring Fraud Claims

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Previous articles

SEC open to delisting for UK companies

GTP and Relational Security Partner to Streamline Third-Party Security Audits Required Under Such Regulations as SOX and GLB

Small Companies Get a Break on Sarbox Compliance

Ex-SEC chief lauds reforms

Improving accountability - boardroom inspection

Watchdog to hire 100 enforcers

Accounting Firm Trades In SEC Practice for Governance Practice

SEC May Delay Reviews (washingtonpost.com)

New App Automates Key Step Mandated By Sarbanes-Oxley

Think Sarbanes Oxley extension changes things? Think again

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