SEC Sticks To Tough Stance On SOX Clawback Provision

Law360, New York (April 4, 2012, 8:28 PM EDT) -- With its clawback suit filed Tuesday against two former ArthroCare Corp. executives, the U.S. Securities and Exchange Commission stoked fears that it would increase its use of an oft-overlooked provision of the Sarbanes-Oxley Act to try to take away bonuses and other perks accrued during periods of accounting fraud, attorneys say.

Since 2009, the SEC has taken the controversial stance that Section 304 of the Sarbanes-Oxley Act allows the agency to claw back bonuses, stock profits and other forms of incentive pay from executives even if...
To view the full article, register now.