SEC Can Use SOX To Claw Back Exec Bonuses, Judge Rules

Law360, New York (November 13, 2012, 6:13 PM EST) -- A Texas federal judge refused Tuesday to dismiss a U.S. Securities and Exchange Commission suit demanding that two former ArthroCare Corp. executives repay bonuses and stock profits under a provision of the Sarbanes-Oxley Act, rejecting their assertions that the complaint was unconstitutional.

Despite the fact that former ArthroCare CEO Michael A. Baker and chief financial officer Michael T. Gluk weren't directly involved with an alleged fraud carried out by two subordinates, U.S. District Judge Sam Sparks said that by signing SEC filings, corporate officers are making...
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